[Federal Register Volume 73, Number 130 (Monday, July 7, 2008)]
[Notices]
[Pages 38447-38448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-15140]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Post-2009 Resource Pool--Loveland Area Projects

AGENCY: Western Area Power Administration, DOE.

ACTION: Response to letters of interest and comments on appropriate 
purposes for the Loveland Area Projects proposed resource pool.

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SUMMARY: Western Area Power Administration (Western), a Federal power 
marketing agency of the Department of Energy, is publishing this 
response to letters of interest and comments resulting from Western's 
Notice of Request for Letters of Interest in the Federal Register (72 
FR 34679), dated June 25, 2007. The notice provided an opportunity for 
potential new eligible customers to indicate an interest in receiving 
an allocation of Federal power, and for the public to comment on 
appropriate purposes for the Loveland Area Projects (LAP) Post-2009 
proposed resource pool. This Federal Register notice summarizes the 
letters of interest and comments received by Western's Rocky Mountain 
Region (RMR), and Western's plans to proceed with Post-2009 resource 
pool allocations.

ADDRESSES: Information received in response to the aforementioned 
Federal Register notice (72 FR 34679), dated June 25, 2007, including 
comments, letters, and other supporting documents made or kept by 
Western on Post-2009 resource pool allocation procedures, is available 
for public inspection and copying at the Rocky Mountain Customer 
Service Region office, Western Area Power Administration, 5555 East 
Crossroads Boulevard, Loveland, CO 80538-8986.

FOR FURTHER INFORMATION CONTACT: Melanie Reed, Contracts and Energy 
Services Manager, 970-461-7229, or Susan Steshyn, Public Utilities 
Specialist, 970-461-7237. Written requests for information should be 
sent to Rocky Mountain Customer Service Region, Western Area Power 
Administration, Attn: J6200, P.O. Box 3700, Loveland, CO 80539-3003.

SUPPLEMENTARY INFORMATION: The Energy Planning and Management Program 
(Program) was developed in part to implement section 114 of the Energy 
Policy Act of 1992. Western published the Final Rule for the Program, 
60 FR 54151, on October 20, 1995. The 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 power resource 
pools and power allocations from these pools to eligible new preference 
customers and for other appropriate purposes as determined by Western. 
In accordance with the Program and the Loveland Area Projects Final 
Post-1989 Marketing Plan (Post-1989 Marketing Plan), 48 FR 38279, 
August 23, 1983, up to 1 percent of the existing customers' allocations 
will be placed in a resource pool from which power allocations to new 
customers, or for other appropriate purposes as determined by Western, 
will be made.
    On June 25, 2007, Western's RMR published a Notice of Request for 
Letters of Interest in the Federal Register (72 FR 34679) regarding a 
resource pool of up to 1 percent (not to exceed 7 megawatts) of 
marketable resource available to new eligible preference customers as 
of October 1, 2009, and/or other appropriate purposes pursuant to the 
Program.
    Western's RMR received 4 letters from potentially eligible 
preference customers indicating an interest in receiving an allocation 
from the proposed resource pool. RMR also received 2 letters commenting 
on the resource pool allocation policies, procedures, terms and 
conditions, and uses, including other appropriate purposes. These 
comments, Western's responses, and Western's decision on allocating the 
Post-2009 resource pool are summarized below.

Letters of Interest, Comments and Western's Responses

    Comment: Western should implement the next resource pool using the 
same policies and procedures of prior resource pools.
    Response: Comment has been considered in determining the Post-2009 
resource pool policies and procedures.
    Comment: Western should focus on allocations to preference eligible 
electric utilities in amounts sufficient to be meaningful to the new 
firm power customers. Providing small allocations to new customers will 
not offer sufficient benefit to new customers and works a hardship on 
existing firm power customers whose allocations have been reduced to 
create the new resource pool.
    Response: Historically, 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 in accordance with 
Federal Reclamation Law. Western will use general eligibility and 
allocation criteria to assess and determine the allocations based on 
the potential new customer's applicant profile data. Through a previous 
re-allocation process, these criteria have proven to be fair and 
significant enough to benefit new customers.
    Comment: Western must act within existing laws and regulations in 
making new allocations. In no event should Western use ``appropriate 
purposes'' to attempt to legislate new policy regarding eligibility 
requirements for receiving Federal firm power allocations.
    Response: Comment has been considered in determining the Post-2009 
resource pool policies and procedures. Further, no comments were 
received by RMR suggesting any other appropriate uses for the Post-2009 
resource pool other than providing an allocation to new preference 
customers.

[[Page 38448]]

    Comment: Western should require the identical terms and conditions 
in new customers' contracts to those of existing firm power customers. 
If withdrawals are made in the future, reductions should be applied to 
all firm power contract holders.
    Response: All of the RMR's firm electric service contracts provide 
for future withdrawals according to the Program. New firm electric 
service customers will be subject to those same terms. Thus, they will 
be subject to any future withdrawals to create a resource pool under 
the Program.

Use of the Post-2009 Resource Pool

    Based on the letters of interest and the comments noted above, 
Western has determined the resource pool should be made available to 
new preference customers only and not for other appropriate purposes. 
Allocations to new preference customers shall be made in accordance 
with the Post-1989 Marketing Plan and the Program. Western intends to 
carry forward the key principles and the general eligibility and 
allocation criteria established in its Post-2004 Resource Pool 
procedures. Western will publish a separate Federal Register notice 
identifying the procedures and requesting applications from potential 
new eligible preference customers. Note that those who have previously 
expressed an interest in an allocation of LAP Federal power must submit 
an application to be considered for an allocation.

Review Under the National Environmental Policy Act

    Western 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 the Federal Register on October 12, 
1995 (60 FR 53181). Western will comply with any additional NEPA 
requirements for this resource pool.

    Dated: June 26, 2008.
Timothy J. Meeks,
Administrator.
[FR Doc. E8-15140 Filed 7-3-08; 8:45 am]
BILLING CODE 6450-01-P