[Federal Register Volume 73, Number 200 (Wednesday, October 15, 2008)]
[Notices]
[Pages 61109-61113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-24430]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Post-2010 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 Region, a Federal power marketing agency of the Department of 
Energy (DOE), is seeking comments on proposed procedures and is calling 
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 
appropriate purposes as determined by Western. Western, in accordance 
with the Program, proposes procedures for comment and consideration, 
and also calls for applications from entities interested in a Federal 
power resource pool allocation. This resource pool is comprised 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, 2011 (Post-2010 Resource 
Pool). Preference entities that wish to apply for an allocation of 
power from Western's Upper Great Plains Region must submit formal 
applications as outlined below.

DATES: An entity interested in commenting on proposed procedures must 
submit written comments to Western's Upper Great Plains Regional Office 
at the address below. An entity applying for an allocation of power 
must submit a formal application to the Upper Great Plains Regional 
Office at the address below. Western must receive written and/or 
electronic comments and/or applications by 4 p.m., MST, on January 13, 
2009. Western reserves the right to not consider any comments and/or 
applications received after the prescribed date and time.
    Western will hold a public information forum and a public comment 
forum (immediately following the public information forum) on the 
proposed procedures and applications. The public information and public 
comment forums will be held on November 20, 2008, at 9 a.m. CST.

ADDRESSES: Submit applications for an allocation of Western power and/
or written comments regarding these proposed procedures to Robert J. 
Harris, Regional Manager, Upper Great Plains 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 
with an electronic signature to [email protected]. If submitting the 
application electronically and an electronic signature is not 
available, please either fax or mail the application signature page 
with the signature to the fax number/address provided above. 
Application forms are available upon request or may be accessed at 
http://www.wapa.gov/ugp/post2010/APD.htm. Applicants are encouraged to 
use the application form provided at the website.
    The public information and comment forums will be held at the 
Holiday Inn, 100 West 8th Street, Sioux Falls, South Dakota.

FOR FURTHER INFORMATION CONTACT: John A. Pankratz, Public Utilities 
Specialist, Upper Great Plains Region, Western Area Power 
Administration, 2900 4th Avenue North, Billings, MT 59101-1266, 
telephone (406) 247-7392, or e-mail [email protected].

[[Page 61110]]


SUPPLEMENTARY INFORMATION: On October 20, 1995, Western published the 
Final Rule for the Program (Final Rule) 60 FR 54151. 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 preference 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 existing customers. Specifically, 10 CFR 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 an additional 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 June 25, 2007, Western published a Notice of Request for Letters 
of Interest in the Federal Register (72 FR 34680) in which Western 
requested 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, 2011, 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.

Availability of Information

    Documents developed or retained by Western in developing this Post-
2010 Resource Pool will be available for inspection and copying at the 
Upper Great Plains Regional Office in Billings, Montana. Public 
comments received on these proposed procedures will be available for 
viewing at http://www.wapa.gov/ugp/Post2010/default.htm after the close 
of the comment period.

Letters of Interest

    As a result of the June 25, 2007, Notice of Request for Letters of 
Interest, Western received 32 responses, including 19 letters of 
interest and 13 comment letters. The responses were evaluated and 
categorized into three main areas. Some letters addressed more than one 
category. Eighteen entities expressed an interest in becoming a new 
customer. Three letters of interest were from entities seeking an 
allocation for other appropriate purposes, including supporting 
renewable energy programs and increasing a current customer allocation. 
Thirteen entities submitted comments advocating that Western apply the 
same policies and procedures that were applied to prior marketing 
initiatives, act within existing laws and regulations, not use other 
appropriate purposes to expand eligibility requirements, make 
allocations in such amounts as to be meaningful, and apply identical 
contract terms and conditions as were utilized for existing customers. 
One letter also commented that, under the Post-2010 Resource Pool, 
Western should not provide allocations to preference entities which 
previously held an allocation of Federal power and relinquished that 
allocation.

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 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 3 letters of interest regarding other appropriate 
purposes. One letter was received from a customer interested in an 
increase to its current allocation. Historically, Western has not 
increased allocations within the P-SMBP-ED that were established in 
marketing initiatives under the Program. 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 expected that Western would receive 
significant modification requests, which would likely not be 
supportable with the power available from the Post-2010 Resource Pool. 
Any significant modifications could result in a new marketing plan, 
which is not the intent of the Program. Therefore, Western is not 
proposing to increase current customer allocations.
    Western also received letters of interest supporting renewable 
resources as another appropriate purpose for the Post-2010 Resource 
Pool. 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 
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 renewable projects across the P-SMBP-ED marketing area. 
Renewable projects are being developed and implemented by Western's 
customers regardless of any potential new allocation from the Post-2010 
Resource Pool.
    Western received comments stating that any commitment of the Post-
2010 Resource Pool should be in amounts sufficient to be meaningful, 
subject to existing laws, regulations, and guidelines, as well as 
contract terms and conditions, set forth in previous marketing 
initiatives under the Program. Western agrees that any allocation made 
from the Post-2010 Resource Pool must comply with existing laws, 
regulations, and guidelines, as well as contract terms and conditions 
applied to allocations made in previous marketing initiatives under the 
Program.
    Western also received a comment that allocations made under the 
Post-2010 Resource Pool should be limited to new preference entities 
that have not had a previous allocation of Federal power and 
relinquished it. The Program limits allocations to new preference 
entities, therefore Western agrees that preference entities that had a 
prior allocation of Federal power are not eligible to receive a new 
allocation in the Post-2010 Resource Pool.

Use of the Post-2010 Resource Pool

    Based on examination of the letters of interest and comments, 
Western has determined the Post-2010 Resource Pool should be made 
available to new preference entities and is not proposing to use a 
share of the Post-2010 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 
and Post-2005 Resource Pools, except as modified herein.

The Proposed Post-2010 Resource Pool Allocation Procedures

    These proposed procedures for the P-SMBP-ED address: (1) 
Eligibility

[[Page 61111]]

criteria, (2) how Western plans to allocate the Post-2010 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 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 firm 
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-2010 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 
or other firm Federal power commitment. Qualified Native American 
applicants who did not receive an allocation from the Post-2000 or 
Post-2005 Resource Pools 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, 2008. 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 an Indian 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-2010 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 such firm power only 
upon executing an electric service contract between Western and the 
allottee, and satisfying 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. The marketing area of the P-SMBP--ED is Montana (east of the 
Continental Divide), all of North Dakota 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 then 
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 2007. Western has the right to 
use estimated load values for calendar year 2007 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 2007. 
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 and Post-2005 Resource Pools, 
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 of the last qualified applicant to execute their respective firm 
electric service contract. Firm power not under contract will be used 
in accordance with the Program.
    I. The minimum allocation shall be 100 kilowatts (kW).
    J. The maximum allocation for qualified utility and non-utility 
applicants shall be 5,000 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 these 
tribes.

IV. General Contract Principles

    Western proposes to apply the following General Contract Principles 
to all applicants receiving an allocation of firm power under these 
proposed Post-2010 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, reserves 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, if necessary. Western may assist the 
allottee in obtaining third-party transmission arrangements for the 
delivery of firm power allocated under these procedures to new 
customers.
    D. Contracts entered into under the Post-2010 Resource Pool 
Allocation Procedures shall provide for Western to furnish firm 
electric service effective from January 1, 2011, through December 31, 
2020.
    E. Contracts entered into as a result of these procedures shall 
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 Upper Great Plains 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 Region. 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

[[Page 61112]]

available at http://www.wapa.gov/ugp/Post2010/APD/default.htm, or hard 
copies of the application are available upon request. 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. Applicants 
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 entity/organization seeking the allocation of 
Federal power. The APD shall consist of the following:
    1. Applicant Information:
    a. Applicant's (entity/organization requesting an allocation) name 
and address.
    b. Person(s) representing applicant: Contact person name, title, 
address, telephone and fax number, and email address.
    c. Type of entity/organization: Federal agency, state agency, 
irrigation district, municipal, rural, or industrial user, 
municipality, Native American tribe, public utility district, rural 
electric cooperative, or other, please specify.
    d. Parent entity/organization of applicant, if any.
    e. Name of the applicant's member organizations, if any.
    f. Applicable law under which the applicant was established.
    g. Applicant's geographic service area: If available, please submit 
a map of the service area, and indicate the date prepared.
    h. Describe whether the applicant owns and operates its own 
electric utility system.
    i. Provide the date the applicant attained utility status, if 
applicable. 10 CFR 905.35 defines utility status to mean ``that the 
entity has responsibility to meet load growth, has a distribution 
system, and is ready, willing, and able to purchase power from Western 
on a wholesale basis for resale to retail customers.''
    j. Describe the entity/organization that will interact with Western 
on contract and billing matters.
    2. Applicant's Loads:
    a. Utility and non-utility applicants:
    (i) If applicable, provide the number and type of customers served 
(e.g., residential, commercial, industrial, military base, 
agricultural).
    (ii) Provide the actual monthly maximum demand (kilowatts) and 
energy use (kilowatt-hours) experienced in calendar year 2007.
    b. Native American Tribe applicants only:
    (i) Indicate the utility or utilities currently serving your loads.
    (ii) If applicable, provide the number and type of customers served 
(e.g., residential, commercial, industrial, military base, 
agricultural).
    (iii) Provide the actual monthly maximum demand (kilowatts) and 
energy use (kilowatt-hours) experienced in calendar year 2007. If the 
actual demand and energy data are not available or are difficult to 
obtain provide the estimated monthly demand.
    (iv) If the demand and energy data in 2.b(iii) above is estimated, 
provide a description of the method and basis for this estimation.
    3. Applicant's Resources:
    a. A list of current power supplies if applicable, including the 
applicant's own generation as well as purchases from others. For each 
supply, provide the resource name, capacity supplied, and the 
resource's location.
    b. For each power supplier, provide a description and status of the 
power supply contract (including the termination date).
    c. For each power supplier, provide the type of power: Power supply 
is on a firm basis or power supply is not on a firm basis, please 
explain.
    4. Transmission:
    a. Points of delivery: Provide the requested point(s) of delivery 
on Western's transmission system (or a third-party's transmission 
system) the voltage of service required, and the capacity desired, if 
applicable.
    b. Transmission arrangements: Describe the transmission 
arrangements necessary to deliver firm power to the requested points of 
delivery. Include a brief description of the applicant's transmission 
and distribution system including major interconnections. Provide a 
single-line drawing of applicant's system, if one is available.
    c. Provide a brief explanation of the applicant's ability to 
receive and use, or receive and distribute Federal power as of January 
1, 2008.
    5. Other Information: The applicant may provide any other 
information pertinent to receiving an allocation.
    6. Signature: Western requires 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 an allocation.
    The signature block must contain a certification stating: ``By 
signing below, I certify the information which I have provided is true 
and correct to the best of my information, knowledge and belief.'' 
Electronically submitted applications must contain an electronic 
signature, or in the alternative, the signature page with a signature 
should be faxed or mailed as provided for in the Addresses Section 
above.
    Recordkeeping Requirements: If Western accepts your application and 
you receive an allocation of Federal power you must keep all records 
associated with your APD for a period of 3 years after you sign your 
contract for Federal power. If you do not receive an allocation of 
Federal power, there is no recordkeeping requirement.
    Western has obtained an Office of Management and Budget (OMB) 
Control Number 1910-5136 for the collection of the above information.

B. Western's Consideration of Applications

    1. When Western receives the APD, Western will verify that the 
applicant meets the General Eligibility Criteria set forth in Section 
II, and that the application contains all items requested in the APD.
    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 Criteria, Western will send a letter explaining why the 
applicant did not qualify.
    c. If the applicant has met the General Eligibility Criteria, 
Western will determine the amount of firm power, if any, to allocate 
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.

Resource Pool Procedure Requirements

Environmental Compliance

    Western completed an Environmental Impact Statement on the Program 
(DOE/EIS-0812), pursuant to the National Environmental Policy Act of 
1969, 42 U.S.C. 4321-4370(b), as amended and supplemented, (NEPA). The 
Record of Decision was published in the Federal Register on October 12, 
1995, (60 FR 53181). Western's NEPA review assured

[[Page 61113]]

all environmental effects related to these actions have been analyzed.

Paperwork Reduction Act

    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act, unless that collection 
displays a currently valid OMB control number. The use of the referred 
to APD application form has been approved by OMB under the Control 
Number 1910-5136, expiration date September 30, 2011.

    Dated: October 1, 2008.
Timothy J. Meeks,
Administrator.
[FR Doc. E8-24430 Filed 10-14-08; 8:45 am]
BILLING CODE 6450-01-P