[Federal Register Volume 74, Number 223 (Friday, November 20, 2009)]
[Notices]
[Pages 60256-60257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27910]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project--Post-2017 Application of the Energy 
Planning and Management Program Power Marketing Initiative

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposal.

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SUMMARY: The Western Area Power Administration (Western), Desert 
Southwest Region, a Federal power marketing agency of the Department of 
Energy (DOE) announces its Post-2017 remarketing effort for the Boulder 
Canyon Project (BCP). Current BCP long-term contracts will expire on 
September 30, 2017. In 1995, Western adopted the Power Marketing 
Initiative (PMI) in Subpart C of the Energy Planning and Management 
Program (Program) (10 CFR part 905). The Record of Decision for the 
Program states that application of the PMI will be done on a project-
specific basis. If, by means of a public process, Western applies the 
PMI to the BCP, the current long-term contractors of the project would 
receive an extension of a major portion of the resources available to 
them at the time their contracts expire. Western now proposes to apply 
the PMI to the long-term power contracts of the BCP.

DATES: Western will hold three public information forums regarding the 
BCP remarketing on the following dates: December 1, 2009, 1 p.m., PST, 
Las Vegas, Nevada; December 2, 2009, 1 p.m., PST, Ontario, California; 
December 3, 2009, 1 p.m., MST, Phoenix, Arizona.
    Western will also hold three public comment forums. The dates for 
these forums are: January 19, 2010, 1 p.m., PST, Las Vegas, Nevada; 
January 20, 2010, 1 p.m., MST, Phoenix, Arizona; January 21, 2010, 1 
p.m., PST, Ontario, California. Western will accept written comments on 
or before January 29, 2010. Western reserves the right to not consider 
any comments received after the prescribed date and time.

ADDRESSES: Comments may be submitted to: Mr. Darrick Moe, Western Area 
Power Administration, Desert Southwest Regional Manager, P.O. Box 6457, 
Phoenix, AZ 85005-6457. Comments may also be faxed to (602) 605-2490 or 
e-mailed to [email protected].
    The public information and public comment forum locations are: Las 
Vegas Tropicana, 3801 Las Vegas Boulevard, South Las Vegas, Nevada; 
Western Area Power Administration, Desert Southwest Regional Office, 
615 S. 43rd Ave, Phoenix, Arizona; DoubleTree Ontario Airport, 222 N. 
Vineyard, Ontario, California.
    As access to Western facilities is controlled, any U.S. citizen 
wishing to attend any meeting held at Western must present an official 
form of picture identification, such as a U.S. driver's license, U.S. 
passport, U.S. Government ID, or U.S. Military ID, at the time of the 
meeting. Foreign nationals shall contact Western at least 45 days in 
advance of the meeting to obtain the necessary admittance to Western.

FOR FURTHER INFORMATION CONTACT: Mr. Mike Simonton, Remarketing 
Specialist, Desert Southwest Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, AZ 85005, telephone (602) 605-2675, e-mail 
[email protected]. Program information and the Conformed General 
Consolidated Power Marketing Criteria or Regulations for Boulder City 
Area Projects (Conformed Criteria) published in the Federal Register 
(49 FR 50582) on December 28, 1984, are available at http://www.wapa.gov/dsw/pwrmkt.

SUPPLEMENTARY INFORMATION: In 1987, Western marketed the power 
resources of the BCP and entered into 30-year term contracts with the 
current BCP contractors in accordance with the Hoover Power Plant Act 
of 1984, and the Conformed Criteria. These events resulted in the 
allocation of 1,951 megawatts (MW) of contingent capacity with an 
associated 4,527,001 megawatt-hours (MWh) of annual firm energy. 
Pursuant to 43 U.S.C. 619a(4), these long-term contracts will expire on 
September 30, 2017. Western must determine if the PMI, as outlined in 
the Program, will be applied to the BCP for commitments beyond that 
date, the quantity of resources to be extended to existing contractors, 
the size of the proposed resource pool, excess energy provisions, and 
the term of the contract.
    Western first proposed the Program on April 19, 1991 (56 FR 16093). 
The goals of the Program were to encourage efficient energy use by 
Western's power customers by requiring Integrated Resource Planning and 
to extend Western's firm power resource commitments. In the final rule 
of the Program, Western stated that application of the PMI, including 
the amount of resources extended, would initially apply only to the 
Pick-Sloan Missouri Basin Program-Eastern Division and the Loveland 
Area Projects. Applicability to other projects would be determined 
through future, project-specific public processes. Specific to the BCP, 
Western stated that it would evaluate application of the PMI to the BCP 
no more than 10 years before existing contracts expire. 60 FR 54151, 
54157 (Oct. 20, 1995).
    Consistent with the application of the PMI to other recent Western 
marketing efforts, Western proposes to apply the PMI (10 CFR parts 
905.30 through 905.37) to the BCP. In consultation with the Bureau of 
Reclamation and referencing the most recent hydrologic studies, Western 
proposes to market 2,044 MW of contingent capacity with an associated 
4,116,000 MWh of annual firm energy from the BCP. Western proposes to 
extend 100 percent of the existing contractors' contingent capacity 
allocations, totaling 1,951 MW, and 95 percent of the proposed 
marketable firm energy, totaling 3,910,200 MWh annually to the existing 
contractors based proportionally upon their existing allocations of 
marketed annual firm energy. This proposal would result in the creation 
of a single, one-time resource pool consisting of 93 MW of contingent 
capacity with an associated 205,800 MWh of annual firm energy. Western 
proposes that all contract terms be a length of 30 years commencing on 
October 1, 2017.
    The marketing area is generally defined as consisting of southern

[[Page 60257]]

California, southern Nevada, most of Arizona, and a small part of New 
Mexico; and is more specifically defined in the Conformed Criteria. New 
customers meeting the requirements established in the BCP marketing 
criteria and qualifying Native American Tribes within the BCP marketing 
area will be eligible to request an allocation of capacity and energy 
from the BCP resource pool. Native American Tribes need not have 
utility status to qualify for an allocation. As provided in the current 
BCP Implementation Agreement, new contractors, or contractors who 
receive an increased allocation will be required to reimburse existing 
BCP contractors for replacement capital advances to the extent existing 
contractors' allocations are reduced as a result of creating the 
resource pool.
    Western is seeking comments regarding the applicability of the PMI 
to the BCP, the quantity of resources to be extended to existing 
contractors, the size of the proposed resource pool, excess energy 
provisions, and the term of contracts.
    Under their respective State laws the Colorado River Commission 
(CRC) and the Arizona Power Authority (APA) have been the designated 
agents for acquiring and remarketing BCP power within Nevada and 
Arizona respectively. Western seeks comments regarding CRC and APA's 
role in Western's allocation process.
    Following the public comment period, Western will analyze the 
comments received and publish its policy regarding the application of 
PMI to BCP in the Federal Register.

Regulatory Procedure Requirements

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.

Environmental Compliance

    In accordance with the DOE National Environmental Policy Act 
Implementing Procedures (10 CFR 1021), Western has determined that this 
action fits within class of action B4.1 Contracts/marketing plans/
policies for excess electric power, in Appendix B to Subpart D to part 
1021--Categorical Exclusions Applicable to Specific Agency Actions.

    Dated: November 10, 2009.
Timothy J. Meeks,
Administrator.
[FR Doc. E9-27910 Filed 11-19-09; 8:45 am]
BILLING CODE 6450-01-P