[Federal Register Volume 73, Number 250 (Tuesday, December 30, 2008)]
[Notices]
[Pages 79878-79880]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30968]


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DEPARTMENT OF ENERGY

Western Area Power Administration


2015 Resource Pool

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Final 2015 Resource Pool Size and Revised Eligibility 
Criteria.

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SUMMARY: The Western Area Power Administration (Western), a Federal 
power marketing agency of the U.S. Department of Energy (DOE), 
published its 2004 Power Marketing Plan (Marketing Plan) for Western's 
Sierra Nevada Customer Service Region (SNR) in the Federal Register on 
June 25, 1999 (64 FR 34417). The Marketing Plan specifies the terms and 
conditions under which Western will market power from the Central 
Valley Project (CVP) and the Washoe Project beginning January 1, 2005, 
and continuing through December 31, 2024. The Marketing Plan provides 
for a 2015 Resource Pool of up to 2 percent of SNR's marketable power 
resources. The 2015 Resource Pool will be available for power 
allocations to preference entities that meet the Eligibility Criteria. 
Western published

[[Page 79879]]

its Proposed 2015 Resource Pool Size and Revised Eligibility Criteria 
in the Federal Register on May 5, 2008 (73 FR 24592). This notice 
responds to the comments received on the Proposed 2015 Resource Pool 
Size and Revised Eligibility Criteria and sets forth the Final 2015 
Resource Pool Size and Revised Eligibility Criteria.
    This Federal Register notice is not a call for applications for 
Federal power allocations. Preference entities who wish to apply for an 
allocation of power from SNR must submit formal applications in 
response to Western's Call for 2015 Resource Pool Applications to be 
published under a separate notice. Application procedures will be set 
forth in the Call for 2015 Resource Pool Applications.

DATES: The Final 2015 Resource Pool Size and Revised Eligibility 
Criteria will become effective January 29, 2009.

FOR FURTHER INFORMATION CONTACT: Ms. Jeanne Haas, Power Contracts and 
Energy Services Manager, Sierra Nevada Customer Service Region, Western 
Area Power Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, 
(916) 353-4438, e-mail [email protected].

SUPPLEMENTARY INFORMATION:

Background

    As discussed in Western's May 5, 2008, Federal Register notice for 
the Proposed 2015 Resource Pool Size and Revised Eligibility Criteria, 
the Marketing Plan describes how SNR will market its power resources 
beginning January 1, 2005, through December 31, 2024. During this 
period, the Marketing Plan requires Western to establish and allocate a 
2015 Resource Pool. The Marketing Plan provides Western with discretion 
to reduce all Customers' allocations by up to 2 percent to establish 
the 2015 Resource Pool. As more fully described in the May 5, 2008, 
Federal Register notice, as part of this public process, Western 
proposed: (1) To reduce all existing Customers' allocation by the full 
2 percent and (2) to revise the Eligibility Criteria by deleting the 
following language:

    Existing Customers may apply for a resource pool allocation if 
their Extension CRD, set forth in Appendix A [of the Marketing Plan 
Federal Register 64 FR 34417], is not more than 15 percent of their 
peak load in the calendar year prior to the Call for Applications, 
and not more than 10 MW.

Western started the public process for the 2015 Resource Pool in May 
2008 to ensure that customers have adequate time to secure power and 
delivery arrangements to start on January 1, 2015.
    The Marketing Plan continues to remain in full force and effect and 
will govern the formal allocation process. The size of the 2015 
Resource Pool will reflect the outcome of this public process. 
Additionally, Western will apply the revised Eligibility Criteria 
developed through this process for applications received during the 
2015 Resource Pool allocation.
    This Federal Register notice is not a call for applications for 
Federal power allocations. Entities interested in an allocation of 
power from SNR must apply pursuant to the Call for 2015 Resource Pool 
Applications to be published in a separate Federal Register notice. 
Preference entities who wish to apply for an allocation of power from 
SNR must submit formal applications in response to Western's Call for 
2015 Resource Pool Applications to be published under a separate 
Federal Register notice. The application information and procedures 
will be set forth in that Federal Register notice.

Acronyms and Definitions

    CRD: Contract Rate of Delivery: The maximum amount of capacity made 
available to a Customer for a period specified under a contract.
    Customer: A preference customer who has a contract to purchase 
power under the Marketing Plan.
    Eligibility Criteria: Conditions that must be met to qualify for an 
allocation.
    Existing Customer: A preference customer who had a contract to 
purchase firm power offered under a previous allocation process or 
Marketing Plan that extended through December 31, 2004. Note: The 
definition includes those entities who succeeded in interest to an 
Existing Customer; e.g., if Western approved the assignment of an 
Existing Customer's Federal power allocation to another preference 
customer, the assigned Federal power falls within the definition.
    Extension CRD: An Existing Customer's CRD exclusive of diversity 
and curtailable power and peaking/excess capacity, as it may be 
adjusted in accordance with the Marketing Plan.

Responses to Comments Received on the Notice of Proposed 2015 Resource 
Pool Size and Revised Eligibility Criteria (73 FR 24592, May 5, 2008)

    During the public consultation and comment period, Western received 
nine letters commenting on the proposal. In addition, two customer and 
interested party representatives commented during the May 21, 2008, 
public comment forum. In preparing the Final 2015 Resource Pool Size 
and Revised Eligibility Criteria, Western reviewed and considered all 
comments it received during the public comment period. The comment 
period closed on July 7, 2008.
    The following is a summary of the comments received and Western's 
responses to those comments. Western grouped the comments by subject 
and paraphrased them for brevity. Specific comments are used for 
clarification where necessary.

2015 Resource Pool Size Comments and Responses

    Comment: Three commentors supported the full 2 percent reduction in 
customer allocations to establish the 2015 Resource Pool.
    Response: Western notes the comments. The full 2 percent reduction 
in all customers' Base Resource percentage to provide for a 2015 
Resource Pool will promote widespread use of Federal power.

Eligibility Criteria Comments and Responses

    Comment: A commentor supported the proposal to delete the criterion 
because the formula, which is based on an Existing Customer's Extension 
CRD, is no longer applicable.
    Response: Western notes the comment and agrees that because 
Existing Customers no longer have CRDs, and CRDs are not allocated 
under this Marketing Plan, the criterion is no longer applicable.
    Comment: Two commentors supported deleting the criterion in order 
to ensure full subscription of Western's resources.
    Response: Western notes the comment and agrees that the criterion, 
if used, may be too restrictive to ensure full subscription of 
Western's resources. In addition, Western believes that if this 
criterion is not deleted, it would unfairly disadvantage Existing 
Customers by subjecting them to a criterion that only applies to that 
customer class, while customers that received an allocation under the 
2005 Resource Pool would be exempt.
    Comment: A commentor objected to deleting the criterion. The 
commentor suggested the continued application of the existing criterion 
will ensure Western's resources will be equitably allocated to a 
variety of customers.
    Response: CRDs were used in Western's marketing plans previous to 
this Marketing Plan as a measurement of capacity allocated to a 
customer. Under the current Marketing Plan, customers are allocated a 
percentage of the generation available after Western meets certain 
other obligations. Western used Extension CRDs initially only to 
calculate a percentage for Existing

[[Page 79880]]

Customers. CRDs and Extension CRDs are obsolete and not applicable 
under the 2015 reallocation. Western is committed to its mission to 
provide wide-spread use of its power resources. Removal of this 
criterion will not prevent Western from equitably allocating its 
resources among potential customers.
    Comment: Three commentors suggested modifying the criterion's 
formula to be based on Base Resource percentages rather than Extension 
CRDs.
    Response: If Western were to modify the criterion to be based on 
Base Resource percentages as the commentors suggest, Western believes 
that the criterion is unfairly restrictive and may not ensure full 
subscription of its power resources. Western does not want to continue 
to put any type of criterion in place that unfairly limits the ability 
of any existing customers to apply for an allocation of the 2015 
Resource Pool.
    Comment: A commentor supported deleting the criterion and replacing 
it with a new criterion under which only Existing Customers who have a 
substantial percentage of qualified renewable energy in their power 
portfolio would be qualified to apply for a 2015 Resource Pool 
allocation.
    Response: Although Western supports those customers who have 
substantial qualified renewable energy assets, a renewable portfolio is 
not a criteria to receive an allocation. Western feels that to put such 
a restriction on preference entities may unfairly limit some from 
receiving an allocation of Base Resource.
    Comment: A commentor suggested modifying the criterion to recognize 
the relative size of a Western allocation compared to a customer's 
load.
    Response: Western believes the best method to ensure full 
subscription of its resources is to maintain wide discretion in the 
Eligibility Criteria. However, in determining allocations, Western may 
consider various factors relative to the allocation including the size 
of a customer's load compared to its existing allocation.

Establishing the 2015 Resource Pool Size

    Western has established the pool size for its 2015 Resource Pool 
taking into consideration all of the comments received during the 
comment period. The 2015 Resource Pool will be established by reducing 
all customers' Base Resource by exactly 2 percent. In choosing to set 
the Resource Pool at 2 percent, Western is creating the largest 
possible resource pool allowed under the Marketing Plan and promoting 
the most wide-spread use of its resources.

Revisions to the Eligibility Criteria

    Western has revised the Eligibility Criteria taking into 
consideration the comments received during the comment period and 
public forums. The revision is summarized below.
    The Eligibility Criterion provides that:

    Existing Customers may apply for a resource pool allocation if 
their Extension CRD, set forth in Appendix A [of the Marketing Plan 
Federal Register 64 FR 34417], is not more than 15 percent of their 
peak load in the calendar year prior to the Call for Applications, 
and not more than 10 MW is no longer applicable.

    Western believes this criterion is out-of-date because Western no 
longer uses CRDs or Extension CRDs. In addition, Western no longer 
allocates its resources via a fixed power amount but, rather, allocates 
a percentage of its generation. Using a 10-megawatt limit on a fixed 
amount of power as a prerequisite to applying for power is not 
practical under the current Marketing Plan. Therefore, Section 
IV.B.2.g. is deleted from the Marketing Plan.

Authorities

    The Marketing Plan for marketing power by SNR after 2004, published 
in the Federal Register (64 FR 34417) on June 25, 1999, was established 
pursuant to the DOE Organization Act (42 U.S.C. 7101-7352); the 
Reclamation Act of June 17, 1902 (ch. 1093, 32 Stat. 388), as amended 
and supplemented by subsequent enactments, particularly section 9(c) of 
the Reclamation Project Act of 1939 (43 U.S.C. 485 h(c)); and other 
acts specifically applicable to the projects involved. This action 
falls within the Marketing Plan and, thus, is covered by the same 
authority.

Regulatory Procedure Requirements

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 regulations (10 CFR Part 1021), Western completed an 
environmental impact statement (EIS) on its Energy Planning and 
Management Program. The Record of Decision was published in the Federal 
Register (60 FR 53181, October 12, 1995). Western also completed the 
2004 Power Marketing Program EIS (2004 EIS), and the Record of Decision 
was published in the Federal Register (62 FR 22934, April 28, 1997). 
The Marketing Plan falls within the range of alternatives considered in 
the 2004 EIS. This NEPA review identified and analyzed environmental 
effects related to the Marketing Plan. This action falls within the 
Marketing Plan and, thus, is covered by the 2004 EIS.

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: December 15, 2008.
Timothy J. Meeks,
Administrator.
[FR Doc. E8-30968 Filed 12-29-08; 8:45 am]
BILLING CODE 6450-01-P