[Federal Register Volume 75, Number 242 (Friday, December 17, 2010)]
[Notices]
[Pages 78988-78992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31749]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Post-2014 Resource Pool-Loveland Area Projects, Allocation 
Procedures and Call for Applications

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of allocation procedures and call for applications.

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SUMMARY: Western Area Power Administration (Western), a Federal power 
marketing agency of the Department of Energy (DOE), is publishing this 
notice of allocation procedures and call for applications from 
preference entities interested in an allocation of Federal electric 
power. Subpart C of the Energy Planning and Management Program 
(Program), which was developed in part to implement Section 114 of the 
Energy Policy Act of 1992, provides for establishing project-specific 
resource pools and allocating power from these pools to eligible new 
preference customers and for other appropriate purposes as determined 
by Western. These allocation procedures and call for applications, in 
conjunction with the Loveland Area Projects (LAP) Final Post-1989 
Marketing Plan (Post-1989 Marketing Plan), establish the framework for 
allocating power from the LAP resource pool. This resource pool is 
comprised of up to one percent of the long-term marketable resource of 
the LAP.

DATES: An entity interested in applying for an allocation of electric 
power from Western must submit a written application (see Applicant 
Profile Data (APD) in Section V.A.) to Western's Rocky Mountain 
Customer Service Region at the address below. Western must receive the 
application by 4 p.m., MST, on Friday, March 4, 2011. Western reserves 
the right to not consider an application that is received after the 
prescribed date and time.
    A single public information forum (not to exceed 3 hours) on the 
allocation procedures, call for applications, and APD will be held on 
Wednesday, February 2, 2011, at 1 p.m. MST; at the address below.

ADDRESSES: Submit applications for an allocation of electric power to 
Bradley S. Warren, Regional Manager, Rocky Mountain Customer Service 
Region, Western Area Power Administration. Applications may be 
delivered by certified mail, commercial mail, e-mail, or fax. Mail 
applications to 5555 East Crossroads Boulevard, Loveland, CO 80538-
8986. Submit e-mail applications to [email protected] with an 
electronic signature. If an electronic signature is not available, fax 
the signature page to 970-461-7204, or mail it to the address above. 
Fax applications to 970-461-7204.
    Information about the Post-2014 Resource Pool Allocation 
Procedures, including letters and other supporting documents made or 
kept by Western pertaining to these allocation procedures and call for 
applications, 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.
    The single public information forum on the allocation procedures, 
call for applications and APD will be held on Wednesday, February 2, 
2011, at 1 p.m., MST, at the Embassy Suites Hotel, Spa and Conference 
Center, 4705 Clydesdale Parkway, Loveland, CO 80538; telephone number 
970-593-6200.

FOR FURTHER INFORMATION CONTACT: Linda Swails, Public Utilities 
Specialist, 970-461-7339, or Melanie Reed, Contracts and Energy 
Services Manager, 970-461-7229. 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: Western published the final rule 
establishing the Program on October 20, 1995 (60 FR 54151). The rule 
became effective on November 20, 1995 and is codified at 10 CFR part 
905. Subpart C of the Program, Power Marketing Initiative, provides for 
allocations from project-specific power resource pools to eligible new 
preference customers and/or for other appropriate purposes as 
determined by Western. Up to one percent of existing customers' 
allocations will be placed in a resource pool from which power 
allocations to new customers will be made. Allocations to new 
preference customers shall be made in accordance with the Post-1989 
Marketing Plan and the Program. This notice sets forth the Post-2014 
Resource Pool Allocation Procedures for making these allocations. These 
procedures address: (1) The amount of pool resources; (2) general 
eligibility criteria; (3) general allocation criteria, i.e., how 
Western plans to allocate pool resources to new customers as provided 
for in the Program; (4) general contract principles under which Western 
will sell the allocated power, and; (5) APD, i.e., application 
information required from each applicant. As restated below, these 
procedures are consistent with the key principles and general 
eligibility and allocation criteria established in the LAP Post-2004 
and Post-2009 Resource Pool Procedures.

I. Amount of Pool Resources

    Western will allocate up to one percent of the LAP long-term firm 
hydroelectric resource available as of October 1, 2014, as firm power. 
``Firm power'' means firm capacity and associated energy allocated by 
Western that is subject to the terms and conditions specified in 
Western's long-term firm electric service contract. The amount of 
resource that will become available on October 1, 2014, is 
approximately 6.9 MW for the summer season and 6.1 MW for the winter 
season.

II. General Eligibility Criteria

    Western will apply the following general eligibility criteria to 
applicants seeking an allocation of firm power under the Post-2014 
Resource Pool Allocation Procedures:
    A. Qualified applicants must be preference entities as defined by 
Section 9c 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 LAP marketing area. (See Section III.C. below for a 
description of the LAP marketing area.)
    C. Qualified applicants must not have a current firm electric 
service contract nor be a member of a parent entity that has a firm 
electric service contract with Western.
    D. Qualified utility and non-utility applicants must be able to use 
the firm

[[Page 78989]]

power directly or be able to sell it directly to retail customers.
    E. Qualified utility applicants that are municipalities, 
cooperatives, public utility districts, or public power districts must 
attain utility status by October 1, 2011. ``Utility status'' means that 
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. A qualified Native American applicant must be an Indian Tribe as 
defined in the Indian Self Determination Act of 1975, 25 U.S.C. 450b, 
as amended and supplemented.

III. General Allocation Criteria

    Western will apply the following general allocation criteria to 
applicants seeking an allocation of firm power under the Post-2014 
Resource Pool Allocation Procedures:
    A. Allocations of firm power will be made in amounts solely 
determined by Western in exercising its discretion as permitted under 
Reclamation Law.
    B. An allottee will have the right to purchase power only after 
executing a firm electric service contract with Western, and satisfying 
all conditions for firm electric service delivery in the contract.
    C. Firm power allocated under these procedures will be available 
only to new qualified applicants in LAP's existing marketing area. This 
marketing area includes parts of Colorado, Kansas, Nebraska, and 
Wyoming. LAP's marketing area is specifically defined as the portion of 
Colorado east of the Continental Divide, Mountain Parks Rural Electric 
Association's service territory in Colorado west of the Continental 
Divide, the portion of Kansas located in the Missouri River Basin, the 
portion of Kansas west of the eastern borders of the counties 
intersected by the 100th Meridian, the portion of Nebraska west of the 
101st Meridian, and Wyoming east of the Continental Divide.
    D. An allocation made to an Indian Tribe will be based on actual 
load, or estimated load as developed by the Tribe. Western will 
evaluate and may adjust inconsistent estimates during the allocation 
process. Western is willing to assist Tribes in developing load 
estimating methods.
    E. Allocations made to eligible utility and non-utility applicants 
will be based on 2009-2010 winter season and 2010 summer season loads. 
Western will apply the Post-1989 Marketing Plan, Program criteria, and 
the Post-2004 and Post-2009 Resource Pool criteria to these loads, 
except as restated herein.
    F. Firm capacity and energy will be based upon each applicant's 
seasonal system load factor.
    G. Any long-term firm electric service contract offered by Western 
to an applicant is expected to be executed by the applicant no later 
than September 30, 2012, unless otherwise agreed to in writing by 
Western.
    H. The resource pool will be dissolved subsequent to the closing 
date for executing firm electric service contracts. Firm power not 
under contract will be used as Western determines.
    I. The minimum allocation shall be 100 kilowatts (kW).
    J. The maximum allocation shall be 5,000 kW. Qualified Native 
American applicants are not subject to this limitation.
    K. Contract rates of delivery shall be subject to adjustment in the 
future as provided in the firm electric service contract.
    L. If Western encounters unanticipated obstacles to delivering firm 
electric service to an Indian Tribe, it retains the right to provide 
the economic benefit of the resource directly to the Tribe.

IV. General Contract Principles

    Western will apply the following general contract principles to all 
allottees receiving an allocation of firm power under the Post-2014 
Resource Pool Allocation Procedures:
    A. Western, at its discretion and sole determination, reserves the 
right to adjust the contract rate of delivery on 5 years' advance 
written notice in response to changes in hydrology and river 
operations. Any such adjustments shall take place only after a public 
process.
    B. Each allottee is ultimately responsible for making its own 
third-party delivery arrangements. Western may assist allottees in 
making third-party transmission arrangements for delivery of firm 
power.
    C. Contracts entered into under the Post-2014 Resource Pool 
Allocation Procedures shall provide for Western to furnish firm 
electric service effective October 1, 2014, through September 30, 2024.
    D. Contracts entered into under the Post-2014 Resource Pool 
Allocation Procedures shall incorporate Western's standard provisions 
for power sales contracts, to include integrated resource planning and 
general power contract provisions.

V. Applications for Firm Power

    This notice formally requests applications from qualified entities 
that desire to purchase firm power from LAP. Applications for an 
allocation of firm power under these procedures must be submitted in 
writing to the Regional Manager, Rocky Mountain Customer Service 
Region. APD must be received at Western's Rocky Mountain Customer 
Service Region in accordance with the requirements listed herein. 
Western reserves the right to not consider applications submitted 
before publication of this notice or after the deadline specified in 
the DATES section above. Applications are available upon request and at 
http://www.wapa.gov/rm/PMcontractRM/Post2014.html.

A. Applicant Profile Data (APD)

    APD content and format are outlined below. To be considered, each 
applicant must submit its APD to Western's Rocky Mountain Customer 
Service Region no later than 4 p.m., MST, on March 4, 2011. See the 
DATES and ADDRESSES sections above for specific information on 
submission and deadline requirements. Applicants are encouraged to use 
the application form provided at the above referenced Web site, but may 
submit the requested information in another format using the sequence 
listed below. The applicant must provide all requested information or 
the most reasonable available estimate, and note any requested 
information that does not apply. Western is not responsible for errors 
in data, missing data, or missing pages. All APD should be answered as 
if prepared by the entity seeking an allocation of Federal power. The 
APD content and format follow.

APPLICANT PROFILE DATA

    1. Applicant Information. Please provide the following:
    a. Applicant's (entity/organization requesting an allocation) name 
and address:

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Applicant's Name:
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Address:
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City:
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State:
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Zip:
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    b. Person(s) representing the applicant:

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Contact Person
(Name & Title):
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Address:
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City:
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[[Page 78990]]

 
State:
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Zip:
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Telephone:
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Fax:
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E-mail Address:
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    c. Type of entity/organization:

[ballot] Federal Agency
[ballot] Irrigation District
[ballot] Municipal, Rural, or Industrial User
[ballot] Municipality
[ballot] Native American Tribe
[ballot] Public Utility District
[ballot] Rural Electric Cooperative
[ballot] State Agency
[ballot] Other, please specify:
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    d. Parent entity/organization of the applicant, if any:
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    e. Name of the applicant's member organizations, if any:
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    f. Applicable law under which the applicant was established:
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    g. Applicant's geographic service area (if available, please submit 
a map of the service area and indicate the date prepared):
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    h. Describe whether the applicant owns and operates its own 
electric utility system:
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    i. Provide the date the applicant attained utility status, if 
applicable. 10 CFR part 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 consumers.''
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    j. Describe the entity/organization that will interact with Western 
on contract and billing matters:
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    2. Service Requested:
    a. Provide the amount of energy the applicant is requesting Western 
to serve (annual kWh):
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    3. 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):

                                            Customer Type and Number
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                    Residential     Commercial      Industrial       Military           Ag.            Other
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Number of
 customers
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 If not applicable, explain why:
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     (ii) Provide the actual monthly maximum demand (kilowatts) and 
energy use (kilowatt-hours) for each calendar month experienced in 
2009-2010 winter season (October-March), and 2010 summer season (April-
September):

                                                    2009-2010
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                     Oct 2009        Nov 2009        Dec 2009      January 2010    February 2010    March 2010
----------------------------------------------------------------------------------------------------------------
Demand
 (kilowatts)
----------------------------------------------------------------------------------------------------------------
Energy
(kilowatt-hours)
----------------------------------------------------------------------------------------------------------------


 
                    April 2010       May 2010        June 2010       July 2010      August 2010   September 2010
----------------------------------------------------------------------------------------------------------------
Demand
 (kilowatts)
----------------------------------------------------------------------------------------------------------------
Energy (kilowatt-
 hours)
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    (iii) Provide the average annual load factor for the Federal 
government Fiscal Year 2010 (October 2009 through September 2010):

    Fiscal Year 2010 Average Annual Load Factor:
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    (iv) Provide the average monthly load factors for 2009-2010 winter 
season (October-March), and 2010 summer season (April-September):

                                      2009-2010 Average Monthly Load Factor
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                     Oct 2009        Nov 2009        Dec 2009      January 2010    February 2010    March 2010
----------------------------------------------------------------------------------------------------------------
Load Factor
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                    April 2010       May 2010        June 2010       July 2010      August 2010   September 2010
----------------------------------------------------------------------------------------------------------------
Load Factor
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[[Page 78991]]

    (v) Identify any factors or conditions anticipated in the next 5 
years which may significantly change peak demands, load duration, or 
profile curves:
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    b. Native American Tribe applicants only:
    (i) Indicate the utility or utilities currently serving your loads:
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    (ii) If applicable, provide the number and type of customers served 
(e.g., residential, commercial, industrial, military base, 
agricultural):

                                            Customer Type and Number
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                    Residential     Commercial      Industrial       Military           Ag.            Other
----------------------------------------------------------------------------------------------------------------
Number of
 customers
----------------------------------------------------------------------------------------------------------------
 If not applicable, explain why:
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    (iii) Provide the actual monthly maximum demand (kilowatts) and 
energy use (kilowatt-hours) experienced in 2009-2010 winter season 
(October-March), and 2010 summer season (April-September). If the 
actual demand and energy data are not available or are difficult to 
obtain, provide the estimated monthly demand and energy data:

                                                    2009-2010
----------------------------------------------------------------------------------------------------------------
                     Oct 2009        Nov 2009        Dec 2009      January 2010    February 2010    March 2010
----------------------------------------------------------------------------------------------------------------
Demand
 (kilowatts)
----------------------------------------------------------------------------------------------------------------
Energy (kilowatt-
 hours)
----------------------------------------------------------------------------------------------------------------


 
                    April 2010       May 2010        June 2010       July 2010      August 2010   September 2010
----------------------------------------------------------------------------------------------------------------
Demand
 (kilowatts)
----------------------------------------------------------------------------------------------------------------
Energy (kilowatt-
 hours)
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    (iv) If the demand and energy data in 3.b.(iii) above is estimated, 
provide a description of the method and basis for the estimation:
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    (v) Provide the actual average annual load factor for the Federal 
government Fiscal Year 2010 (October 2009 through September 2010). If 
the actual load factor is not available, provide the estimated load 
factor:
    Fiscal Year 2010 Average Annual Load Factor:
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    (vi) Provide the actual monthly load factors for 2009-2010 winter 
season (October-March), and 2010 summer season (April-September). If 
the actual load factors are not available, provide the estimated load 
factors:

                                      2009-2010 Average Monthly Load Factor
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                     Oct 2009        Nov 2009        Dec 2009      January 2010    February 2010    March 2010
----------------------------------------------------------------------------------------------------------------
Load Factor
----------------------------------------------------------------------------------------------------------------


 
                    April 2010       May 2010        June 2010       July 2010      August 2010   September 2010
----------------------------------------------------------------------------------------------------------------
Load Factor
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    (vii) If the load factor data in 3.b.(v) and (vi) is estimated, 
provide a description of the method and basis for the estimation:
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    (viii) Identify any factors or conditions anticipated in the next 5 
years which may significantly change peak demands, load duration, or 
profile curves:
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    4. Applicant's Resources. Please provide the following information:
    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:
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    b. For each power supplier, provide a description and status of the 
power supply contract (including the termination date):
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    c. For each power supplier, provide the type of power:
[ballot] Power supply is on a firm basis.
[ballot] Power supply is on a non-firm basis. Please explain:
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    5. 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:
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    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:

[[Page 78992]]

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    c. Provide a brief explanation of the applicant's ability to 
receive and use, or receive and distribute, Federal power as of [date]:
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    6. Other Information. The applicant may provide any other 
information pertinent to receiving an allocation:
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    7. 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.

    By signing below, I certify the APD which I have provided is true 
and correct to the best of my knowledge and belief.
    Signature Title

    Record Keeping Requirements: If Western accepts an application and 
the applicant receives an allocation of Federal power, the applicant 
must keep all APD for a period of 3 years after signing a firm electric 
service contract.

B. Western's Consideration of Applications

    1. Upon receipt, Western will review APD and verify that each 
applicant meets the general eligibility criteria set forth in Section 
II.
    a. Western will request, in writing, additional information from 
any applicant whose APD is deficient. The applicant shall have 15 
calendar days from the date on Western's request letter to provide, in 
writing, the needed information. If the requested information is not 
provided within that time, Western retains the right to consider the 
application withdrawn.
    b. If Western determines that an applicant does not meet the 
general eligibility criteria, Western will send a letter explaining why 
the applicant did not qualify.
    c. If an applicant meets the general eligibility criteria, Western 
will determine the amount of firm power to be allocated pursuant to the 
general allocation criteria set forth in Section III. Western will send 
for the applicant's review a draft contract, which contains the terms 
and conditions of the offer and the amount of firm power allocated to 
the applicant.
    2. Western reserves the right to determine the amount of firm power 
to allocate to an applicant, as justified by an applicant's APD.

VI. Review Under the Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980 (PRA), 44 
U.S.C. 3501-3520, Western has received approval from the Office of 
Management and Budget to collect APD under control number 1910-5136.
    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 PRA, unless that collection of information displays 
a currently valid OMB Control Number.

VII. 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, 60 FR 
53181, on October 12, 1995. Western will comply with any additional 
NEPA requirements for this resource pool.

    Dated: December 10, 2010.
Timothy J. Meeks,
Administrator.
[FR Doc. 2010-31749 Filed 12-16-10; 8:45 am]
BILLING CODE 6450-01-P