[Federal Register Volume 76, Number 200 (Monday, October 17, 2011)]
[Notices]
[Pages 64083-64085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-26750]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects--2025 Power Marketing Initiative Proposal

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed 2025 Power Marketing Initiative.

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SUMMARY: Western Area Power Administration (Western), Rocky Mountain 
Region (RMR), a Federal power marketing agency of the Department of 
Energy (DOE), is seeking comments on this proposed 2025 Power Marketing 
Initiative (2025 PMI). Western's firm electric service contracts 
associated with the current marketing plan will expire September 30, 
2024. This proposed 2025 PMI provides the basis for marketing the long-
term firm hydroelectric resources of the Loveland Area Projects (LAP) 
beginning with the Federal fiscal year 2025. The 2025 PMI proposes to 
extend the current marketing plan, with amendments to key marketing 
plan principles. This Federal Register notice initiates Western's 
public process for the proposed 2025 PMI and requests public comments. 
Western will prepare and publish the final 2025 PMI in the Federal 
Register after all public comments are considered.

DATES: Entities and individuals interested in commenting on the 
proposed 2025 PMI must submit written comments to Western's RMR. 
Western must receive written comments by 4 p.m. M.S.T., on Monday, 
January 30, 2012, and reserves the right to not consider any comments 
received after the deadline.
    Western will hold two combined public information and public 
comment forums, not to exceed three hours each, on the proposed 2025 
PMI. On each date, the public information forum will immediately 
precede the public comment forum.
    The public information and public comment forum dates and times 
are:
    1. November 29, 2011, 9 a.m., M.S.T., Loveland, Colorado.
    2. November 30, 2011, 1 p.m., C.S.T., Topeka, Kansas.

ADDRESSES: Submit written comments regarding this proposed 2025 PMI to 
Mr. Bradley S. Warren, Regional Manager, Rocky Mountain Region, Western 
Area Power Administration, 5555 East Crossroads Boulevard, Loveland, CO 
80538-8986. Comments may also be faxed to (970) 461-7204, or e-mailed 
to [email protected].

[[Page 64084]]

    The locations for the public information and public comment forums 
are:
    1. Loveland--Embassy Suites Hotel, Spa and Conference Center, 4705 
Clydesdale Parkway, Loveland, CO 80538, telephone number (970) 593-
6200.
    2. Topeka--Capitol Plaza Hotel, 1717 SW Topeka Boulevard, Topeka, 
KS 66612, telephone number (785) 431-7200.

FOR FURTHER INFORMATION CONTACT: Mr. John C. Gierard, Hydraulic 
Engineer, Western Area Power Administration, Rocky Mountain Region, 
5555 East Crossroads Boulevard, Loveland, CO 80538-8986, telephone 
(970) 461-7445.

SUPPLEMENTARY INFORMATION: 

Current Marketing Plan Background

    The final Post-1989 General Power Marketing and Allocation 
Criteria, Pick-Sloan Missouri Basin Program--Western Division (PS-MB-
WD) (Post-1989 Plan), was published in the Federal Register (51 FR 
4012, January 31, 1986) and provided the marketing plan principles used 
to market what is now referred to as LAP firm hydropower resources. The 
firm electric service contracts associated with the Post-1989 Plan were 
initially to expire in 2004. The Energy Planning and Management Program 
(EPAMP) Final Rule published in the Federal Register (60 FR 54151, 
October 20, 1995), Subpart C extended and amended the Post-1989 Plan. 
EPAMP extended the firm electric service contracts associated with the 
Post-1989 Plan through September 30, 2024, and established the Post-
2004, Post-2009, and Post-2014 resource pools. The current marketing 
plan is inclusive of the Post-1989 Plan as extended and amended by 
EPAMP and the Post-2004, Post-2009, and Post-2014 power marketing 
initiatives.

2025 PMI Proposal Background

    Western initiated informal 2025 PMI discussions with LAP firm 
electric service customers in the summer of 2011 by holding meetings in 
the RMR. In addition, Western held meetings to initiate government-to-
government consultation with tribal firm electric service customers. 
The meetings provided customers the opportunity to review current 
marketing plan principles and provide informal input to Western for 
consideration in this 2025 PMI proposal. Key marketing plan principles 
discussed at the meetings with firm electric service customers 
included: marketing area; contract term; resource pools; marketable 
resource and associated withdrawal provisions; and Mount Elbert pumped-
storage. Customer input for the 2025 PMI proposal supported Western 
extending the current marketing plan with amendments to the marketing 
plan principles related to contract term and resource pools.

2025 PMI Proposal

    Western's 2025 PMI proposes to extend the current marketing plan 
with amendments to the marketing plan principles related to the 
contract term and resource pools. The marketing plan principles 
proposed to be revised, as well as those proposed to be extended, are 
as follows:

Amended Marketing Plan Principles

    1. Contract Term: A 30-year contract term would be used for firm 
electric service contracts. The firm electric service contract term 
would begin October 1, 2024, and expire September 30, 2054.
    2. Resource Pools: The 2025 PMI would provide for resource pools of 
up to 1 percent of the marketable resource under contract at the time 
of each reallocation to be available for eligible new preference 
entities. Reallocations would occur at the beginning of the October 1, 
2024, contract term and again every 10 years thereafter on October 1, 
2034, and October 1, 2044.

Extended Marketing Plan Principles

    Extension of the current marketing plan includes the following key 
principles not specifically addressed in the preceding section entitled 
``Amended Marketing Plan Principles.'' The following key principles 
were discussed with the firm electric service customers during the 
informal customer input phase of this process and are included below 
for reference purposes.
    1. Marketable Resource: Reservoir operation modeling, which employs 
the historic hydrologic record and assumes 2025 reservoir operating 
criteria, is being used to project monthly marketable energy and 
capacity. Projected marketable energy is the average monthly energy 
indicated by the modeling with provisions for: power plant station 
service use; energy received to compensate for Green Mountain power 
interference; reduced generating efficiency caused by power system 
regulation; Colorado-Big Thompson Project pumping; Project Use loads; 
and Special Use loads. For Mt. Elbert generation, only the flow-through 
generation resulting from the transfer of water through the Mt. Elbert 
Conduit to Twin Lakes is included in the marketable energy totals. 
Projected marketable capacity is the monthly capacity available 90 
percent of the time as indicated by the modeling with provisions for: 
typical generating unit maintenance outages; power system reserve 
requirements; Colorado-Big Thompson Project on-peak pumping; Project 
Use loads; and Special Use loads. Mt. Elbert generating capacity was 
assumed to be available at all times except during times of typical 
unit maintenance.
    Based on the marketable energy and capacity projections and taking 
into account the uncertainty in projecting 2025 reservoir operating 
criteria, the proposed 2025 PMI supports extending the existing 
contract rates of delivery commitments, with associated energy, to 
existing long-term firm electric service customers reduced by up to 1 
percent for each new resource pool on October 1, 2024, October 1, 2034, 
and October 1, 2044.
    2. Hydrology and River Operations Withdrawal Provision: Western 
would reserve the right to adjust, at its discretion and sole 
determination, the contract rate of delivery on five years advance 
written notice in response to changes in hydrology and river 
operations. Any such adjustments would take place after an appropriate 
public process.
    3. Marketing Area: The proposed 2025 PMI supports continuing the 
current LAP marketing area, which is the portion of Colorado east of 
the Continental Divide; Mountain Parks Electric, Inc.'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.
    4. Mt. Elbert Pumped-Storage: The proposed 2025 PMI supports 
extending the Mt. Elbert Pumped-Storage contract provisions, which 
provide for pumped-storage energy. The full 200 MW of Mt. Elbert 
capacity is included in the LAP capacity allocations. Only flow-through 
generation is included in LAP energy allocations. Customers may 
schedule capacity without energy. Off-peak energy must be returned to 
Western commensurate with any on-peak energy taken.

Availability of Information

    Documents developed or retained by Western during this public 
process will be available for inspection and copying at the RMR Office, 
located at 5555 East Crossroads Boulevard, Loveland, Colorado. Western 
will post information concerning the proposed 2025 PMI on

[[Page 64085]]

its Web site at https://www.wapa.gov/rm/PMcontractRM/2025%20PMI/default.html. Written comments received as part of the 2025 PMI 
proposal formal public process will be available for viewing on the Web 
site.

2025 PMI Procedures Requirements

Environmental Compliance

    Western will evaluate this action for compliance with the National 
Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321-4347); the 
Council on Environmental Quality Regulations (40 CFR parts 1500--1508); 
and DOE NEPA Regulations (10 CFR 1021).

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: October 7, 2011.
Timothy J. Meeks,
Administrator.
[FR Doc. 2011-26750 Filed 10-14-11; 8:45 am]
BILLING CODE 6450-01-P