[Federal Register Volume 79, Number 183 (Monday, September 22, 2014)]
[Rules and Regulations]
[Pages 56477-56482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22367]
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Rules and Regulations
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Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 /
Rules and Regulations
[[Page 56477]]
DEPARTMENT OF ENERGY
10 CFR Part 905
Revision to the Final Principles of Integrated Resource Planning
for Use in Resource Acquisition and Transmission Planning
AGENCY: Western Area Power Administration, DOE.
ACTION: Final rule.
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SUMMARY: Western Area Power Administration (Western) published in the
Federal Register two proposed changes to Western's Final Principles of
Integrated Resource Planning (IRP) in the Federal Register on June 29,
2011. The Final Principles of IRP were last published in the Federal
Register on June 9, 1995. First, Western proposed that its current
practice of developing project-by-project evaluation criteria to
determine the quantity, length, and source of a long-term energy
purchase be replaced with uniform, Western-wide evaluation criteria.
Western will make no changes to its current practice of developing
project-by-project evaluation criteria to evaluate long-term energy-
purchases. Second, Western proposed eliminating transmission planning
principles that are unnecessary as a result of changes in the planning
area made since 1995. Western will eliminate the transmission planning
principles now accomplished by other means consistent with its
proposal.
DATES: This final rule will become effective on October 22, 2014.
FOR FURTHER INFORMATION CONTACT: Dr. Anthony H. Montoya, Chief
Operating Officer, Western Area Power Administration, P.O. Box 281213,
Lakewood, CO 80228-8213, telephone (720) 962-7071.
SUPPLEMENTARY INFORMATION: The Final Principles of IRP were published
in the Federal Register on June 9, 1995 (60 FR 30533). The Final
Principles of IRP have served as the policy under which Western
develops principles for acquiring project-specific, long-term resources
and for public participation in transmission planning for some Western
projects to increase transmission capability.
Since completing the Final Principles of IRP for transmission
planning in 1995, the transmission industry has undergone significant
change. Several of the comments Western received during the 1995 public
process to develop the Final Principles of IRP requested that Western
avoid duplicating efforts related to transmission planning. At the time
the Final Principles of IRP were adopted, Western did not believe the
procedures for public participation in transmission planning were
duplicative. In light of the current vigorous involvement of
stakeholders in regional and sub-regional transmission planning
entities and the detailed transmission planning process set forth in
Western's Open Access Transmission Tariff (OATT), as described below,
Western now believes that those comments have merit, and the
transmission planning principles established under the Final Principles
of IRP will now be eliminated.
Specifically, Western is actively involved in several transmission
planning efforts throughout its various regions. For example, Western
is currently participating in the Transmission Expansion Planning
Policy Committee under the Western Electricity Coordinating Council,
Southwest Area Subregional Planning Transmission Group, Colorado
Coordinated Planning Group, California Transmission Planning Group,
Sierra Subregional Planning Group, WestConnect, and Mid-Continent Area
Power Pool. These groups either did not exist or were in their
infancies when the transmission planning principles set forth in the
Final Principles of IRP were completed. In the ensuing 19 years, these
planning entities have emerged to provide stakeholders the opportunity
to become involved in regional integrated transmission planning
including projects that would increase Western's transmission capacity.
Moreover, as of December 2009, Western's OATT incorporated a
detailed transmission planning process based upon three core
objectives: (1) Maintaining reliable electric service; (2) improving
the efficiency of electric system operations, including the provision
of open and non-discriminatory access to its transmission facilities;
and (3) identifying and promoting new investments in transmission
infrastructure in a coordinated, open, transparent, and participatory
manner. The transmission planning process that is now a part of
Western's OATT aids timely, coordinated, and transparent information
sharing that fosters the development of electric infrastructure,
maintains reliability, and meets network load growth. The process
includes open planning meetings that allow anyone including, but not
limited to, network and point-to-point transmission customers;
interconnected utilities; sponsors of transmission, generation and
demand-side management developers; and other stakeholders to
participate in all stages of development of Western's transmission
plans.
Lastly, Western engages in annual 10-year transmission planning
activities and joint-planning activities with its customers. These
efforts identify and prioritize long-term transmission system
additions, betterments, and replacements to meet customers' needs and
to ensure the reliability of the bulk electric system.
As a result of the changes discussed above, and in consideration of
the comments set forth in the following section, Western has determined
to finalize its proposal, published in the Federal Register on June 29,
2011 (76 FR 38146), to eliminate from Western's Final Principles of IRP
duplicative transmission planning principles. For the reasons discussed
in the SUMMARY section of this document, and in consideration of the
comments set forth in the following section, Western has determined not
to adopt its proposal of developing uniform, Western-wide evaluation
criteria to determine the quantity, length and source of a long-term
energy purchase. Instead, Western will continue to use its current
practice of developing project-by-project evaluation criteria.
Response to Comments
Western held a public meeting on July 21, 2011, in Lakewood,
Colorado, to solicit input about Western's revision to the Final
Principles of IRP for Use in Resource Acquisition and Transmission
[[Page 56478]]
Planning. The meeting addressed the proposed evaluation criteria and
procedures Western would use for long-term resource acquisition and the
elimination of the transmission planning principles as set forth in the
Final Principles of IRP. Western received oral comments at its July 21,
2011, public meeting and written comment letters. The comments received
and Western's responses follow:
Transmission Planning
Comment: Numerous comments supported the removal of transmission
planning from the IRP process, although the existing coordination
between transmission and resource planning efforts and processes
provides significant value and should be maintained to the extent
possible. One comment urged Western to retain transmission planning as
part of the IRP process and for Western to commit to a robust, open,
and transparent planning process.
Response: Western appreciates the support for removing the
transmission planning from its Final Principles of IRP. Western
determined that a robust, open, and transparent transmission planning
process is now provided by planning efforts of regional and sub-
regional planning entities and Western's OATT. Western agrees there is
a nexus between transmission planning and resource planning efforts.
This will remain a consideration for Western. Given developments in
these areas of transmission planning since the original IRP process was
completed, Western determined that including transmission planning in
the IRP Principles is redundant.
Comment: Generators are discouraged from locating in Western's
service territories because Western does not participate in a regional
transmission organization.
Response: This comment is outside the scope of this process.
Resource Acquisition
Comment: Several comments asked why a proposed change in Western's
policy toward resource acquisitions is needed now since there is no
legislative mandate or ongoing energy crisis and the current policy
seemingly works well. Comments suggested Western delay its process
until it can provide a more complete presentation of its proposal and
engage in further discussions with its customers.
Response: Western's primary goal in proposing modifications to the
existing Principles of IRP was to provide Western the ability to make
long-term purchases in a more expeditious and streamlined manner.
Western determined, in consideration of the comments received on this
issue, to leave the existing procedures in place. The existing
Principles of IRP commit Western to performing a public process before
each purchase of a long-term resource(s), which allows for a
transparent process for long-term purchases and engagement of customers
prior to making such purchases.
Comment: Is there a real need for purchases longer than 5-years
given that short-term contracts provide flexibility and reduce the risk
of financially overextending Western's power customers?
Response: Western will not change this acquisition principle.
Although there could be several factors that may impact Western's
decision to enter into a long-term purchase, such as a long-term
generation reduction resulting from changes in hydrology, reservoir
operations, or extended outages. Western has found that short-term
contracts can effectively satisfy its firming needs, and the existing
principles provide enough flexibility and allow Western's customers, on
a region-specific basis, to consider long-term resource strategies.
Comment: Several comments state that changing to a Western-wide
policy for long-term purchases would not take into account operational
characteristics and contractual provisions of each region, which can be
strikingly different, and should be developed on a regional basis
instead.
Response: Each of Western's regional offices follows the same
general criteria in evaluating whether or not to make a long-term
purchase. Each region will continue to involve its region-specific
customers in the decision-making process and take into account region-
specific impacts.
Comment: Increasing the diversity of Western's portfolio should be
included in the list of ``occurrences'' in Principle No. 1, in addition
to the partial list provided that sets forth reasons for making such
purchases, such as lost hydropower generation or drought.
Response: Western markets power in a manner to encourage the most
widespread use at the lowest possible rates consistent with sound
business principles. Acquiring a renewable resource solely for the
purpose of portfolio diversity, regardless of price, runs counter to
Western's mission. However, diversity is one of the existing principles
that Western will continue to use to evaluate long-term resource
acquisitions.
Planning and Coordination
Comment: Several comments note there are existing processes and
regular planning meetings to discuss potential resource acquisitions
developed by Western and customers that address drought, resource, and
financial interests. These processes have been developed over a period
of years following extensive collaboration between Western and its
customers and should not be undermined by a new policy. Comments
expressed concern about how Western's new proposal would work with the
existing processes and if those current processes would be continued in
the future.
Response: Western does not plan to change any ongoing processes or
regular planning meetings with its customers. Western will continue to
coordinate closely with its customers about long-term purchase
requirements.
Comment: Fundamental principles should be developed in consultation
with project-specific customers and all interested parties with respect
to hydrology, capacity/energy purchased, and customer needs and
willingness to pay for purchases and/or opt out of payment for such
purchases. Notification and planning of such purchases should be made
to the customers and other interested parties prior to any long-term
transaction.
Response: Western does not plan to change any ongoing processes or
regular planning meetings to discuss resource acquisitions with its
customers. Western will continue to coordinate closely with its
customers to develop criteria for long-term purchase requirements.
Implementation
Comment: If Western is considering requests for resource proposals
(short or long-term), notices and invitations for bids should be posted
on Western's Web site with sufficient notice to the public.
Response: Western is not changing its acquisition principles.
Western does provide notice to potential suppliers and interested
stakeholders when soliciting requests for power depending upon the term
sought. Typically, short-term purchases do not require as involved a
process as long-term purchases; however, both processes involve
appropriate notification and involvement following the specific
processes used by each of Western's regional offices.
Comment: Does Western plan to send out proposed revisions after the
comment period is over?
Response: Western carefully considered the comments received and
any potential revisions. Western
[[Page 56479]]
decided to retain the existing acquisition principles and remove only
the transmission planning principles, which are now being performed
under Western's OATT. Given the comments provided, the vast majority of
which supported removal of the transmission planning principles,
Western has determined that an additional comment period is not
necessary.
Comment: The proposal in the June 29, 2011, Federal Register notice
(76 FR 38146) has changes to sections 1, 4, 5, and 6 of Western's Final
Principles of IRP. Will the 1995 Principles be superseded in their
entirety?
Response: Western is maintaining its existing IRP policy and has
eliminated only the duplicative Transmission Planning Principles.
Therefore, the 1995 resource acquisition principles will remain in
place.
Comment: Would it be possible to see all proposed revisions in one
place to eliminate confusion? Also, why are comments due 8 days after
the public meeting?
Response: Western posted a redline/strikeout version of the
Proposed Revised Final Principles of IRP Related to Resource
Acquisition on its Web site and also provided this information at the
July 21, 2011, public meeting. Western also provided 30 days for the
submission of comments. The Federal Register notice was published on
June 29, 2011, and comments were due to Western on July 29, 2011. Due
to logistics, Western's public meeting was scheduled late in that
period. All parties had 30 days from initial publication to comment.
Comment: Western should include in its work plan and in the IRP
Principles a proposal to aggregate demand from a number of smaller
utilities and loads so these customers can benefit from the economies
of scale of investing in a larger resource.
Response: Although small customers may benefit from pooled resource
acquisition, coordinating such purchases is considered beyond the scope
of the proposal.
Comment: Western should seek to coordinate its Request for
Proposals (RFP) with those of other regional entities so all parties
may capture any economic and environmental benefits of larger-scale
resource acquisitions.
Response: Western would consider coordination of RFPs among its
regional offices to achieve economies of scale, and the load diversity
created by Western's extensive geographic service territory may make
certain purchases more economically viable. Western could also consider
a combined RFP with others for long-term resource acquisitions. The
feasibility of such a combined RFP would depend on the complexity of
coordination and the various acquisition requirements.
Comment: Western should create a ``standard offer,'' similar to one
offered by the Tennessee Valley Authority (TVA), for small- to mid-
sized renewables that would offer set prices and long-term contracts
under simplified application and contracting processes.
Response: Western and TVA have very different authorities and
authorizations. TVA has a much broader authority for providing
resources for load growth within its region. Western's resources are
limited to generation provided at certain facilities. Western's
authorizing legislation requires it to deliver this power at the lowest
cost possible consistent with sound business practices. To accomplish
this goal, Western is committed to having an open process available for
all resource providers under its existing procedures.
Comment: Western has a great opportunity to facilitate renewable
resource development through the use of its hydro resources to provide
firming and shaping products for variable resources like wind.
Response: Western already uses the long-term, load-following
capability of the Federal hydroelectric facilities to support the
obligations of its firm electric service contracts. Western will
continue to consider resource diversity in evaluating long-term
resource acquisitions.
Evaluation Criteria
Comment: Western's existing hydropower resources should be
considered as a renewable resource under the IRP policy, and Western
should ensure that any renewable purchases do not operationally affect
hydropower generation. Conversely, another comment suggested that
Western should not consider large-scale hydropower as a renewable
resource.
Response: Western supports consideration of large-scale hydropower
as a clean, renewable, power resource and will work with its customers,
where appropriate, to promote hydropower as a recognized renewable
resource. Western determined the existing evaluation principles, as a
whole, provide ample opportunity to assess the potential impacts any
resource may have on operation of hydropower resources.
Comment: The proposed evaluation criteria are not clear. Further,
defining the process for using the evaluation criteria is needed before
an assessment of the criteria's value can take place.
Response: Western has decided not to adopt the proposed evaluation
criteria. Western's existing acquisition principles are sufficient and
broad enough to give Western the needed flexibility to make future,
long-term purchases. There are many aspects to long-term power
purchases, and the existing guidelines are sufficient to provide
guidance to Western in how resource acquisitions should be considered.
Additional consideration of a resource will be provided by each of
Western's regions at the time a long-term purchase is considered.
Comment: The diversity criterion is broad enough to contain an
adequate consideration of renewable energy resources; therefore, a
separate criterion for renewable resources is not needed.
Response: Under its existing acquisition principles, Western will
continue to give consideration to the environmental attributes of
different generation sources as part of any long-term purchase.
Comment: Western should remove references to demand-side management
from Criterion 5 (e)--``Environmental Impact.''
Response: Although Western is not adopting new principles, under
its existing acquisition principles the criteria will continue to
address environmental impacts, as well as other relevant
considerations, when evaluating possible long-term resource options,
which include demand-side management.
Comment: The proposed process language is silent about how the
evaluation criteria would be used for any specific resource procurement
need; each criterion could have different weightings with such
weightings being contingent on the specifics of the procurement need.
The comment proposes revising the Section 5 introductory statement to
read: ``5. When evaluating potential resource acquisitions under the
Final Principles of Integrated Resource Plan, the following criteria
will be considered, and given weightings based upon the specific
resource acquisition being considered.''
Response: Western is not changing its acquisition principles. Under
Western's existing principles, there may be a need to weight the
evaluation contingent upon the type of purchase that needs to be made,
which can be accomplished as part of a specific resource purchase.
Comment: Why did Western include Criterion 5 (e)--``Environmental
Impact?'' What does Western intend by this criterion? Is Western
required by law to have this criterion in resource evaluations? If not,
it could be deleted
[[Page 56480]]
in favor of those identified in Criterion 5 (g)--``Renewable Energy
Resource.''
Response: As part of a long-term resource acquisition, Western must
perform a National Environmental Policy Act (NEPA) analysis. Although
Western is not changing its acquisition principles, the level of NEPA
analysis will continue to be decided as a part of the specific
acquisition process.
Comment: Western would have greater flexibility if Criterion 5
(g)--``Renewable Energy Resource,'' were instead titled
``Environmental/Green Attributes (Including Renewables),'' which would
enable Western to make purchases, such as large-scale hydropower, that
are sometimes not considered as renewable-energy resources under
legislative mandates. This change would allow Western to address the
question: ``Does the replacement resource being procured have
comparable environmental attributes to what is required?''
Response: Western agrees with the concept, and the existing
principles already allow the consideration of renewable resource
options. The language is broad enough to allow Western to consider both
existing and emerging technologies providing potential environmental/
green attributes.
Comment: Criterion 5 (i)--``Transmission Availability'' might be
more appropriately titled ``Deliverability.'' Deliverability
encompasses transmission availability, but in addition covers any other
delivery-related issues. This would give more flexibility to Western in
long-term resource procurement decisions.
Response: The existing principles require that Western consider
dependability and dispatchability to capture delivery-related concerns.
Comment: Agree with Criterion 5 (h)--``Risk.'' Any risk analysis
should include fuel price and energy-policy risks.
Response: Western appreciates the comment and will continue to
consider all relevant factors when evaluating purchase decisions using
its existing principles including, but not limited to, fuel price and
energy-policy risks.
Comment: Contractual obligations should be adjusted based on
generation facility type. ``Dependability'' should be redefined for
renewables compared to traditional generation, and ``Dispatchability''
and ``Transmission Availability'' criteria should not be so rigid as to
discriminate against variable-energy resources.
Response: Although Western is not changing its acquisition
principles, dependable and dispatchable resources continue to be
required for Western's operations. Having available transmission to
receive and make deliveries of power is critical. Western is supportive
of industry efforts to better integrate renewable resources and will
consider the availability and dependability of all potential resources
when evaluating a potential long-term purchase. Western will not
automatically rule out renewable resources in considering energy
purchases and will continue to take into account all of the existing
principles when evaluating a potential long-term purchase.
Comment: Western, under Criterion 5 (g)--``Renewable Energy
Resource,'' should clearly state that it will give priority to
renewable resources and that these types of resources will receive
additional weighting when Western evaluates all proposed resources
against its IRP criteria.
Response: When evaluating resources for a particular purchase,
Western will evaluate all resource types following the guidelines in
the existing Final Principles of IRP. Each resource acquisition will be
evaluated on its own merits and not in a way that immediately excludes
or promotes certain resource options.
Comment: Will Western provide more detail on the criteria used to
define risk?
Response: Western's existing principles contain risk as a criterion
as understood as part of good utility practice. For example,
creditworthiness of energy suppliers is a legitimate concern of all
utilities; having a resource unavailable due to the financial
insolvency of a supplier is not in Western's interest. With regard to
market uncertainties, Western will continue to evaluate carefully all
potential power resources, including the consideration of externalities
affecting the viability of a resource.
Comment: Western should consider long-term, life-cycle cost,
including environmental costs, over a 20- to 25-year contract period,
so the full value of renewable energy is demonstrated. Western should
also take into account that solar resources are fueled for free and
avoid the uncertainty of volatile fossil fuel commodity markets.
Another comment suggested that some evaluation criteria may not reflect
impending changes in energy markets. A comment suggested language
stating that Western, when assessing whether to enter a long-term
contract, consider near-future changes in a resource's cost,
dependability, dispatchability, risk, and transmission availability.
Response: Western's existing principles are flexible and broad
enough to accommodate the inevitable nuances that exist among various
potential, long-term, purchase power options. In conjunction with
Western's customers and in an open and transparent process, these
principles will be used to examine and properly consider each potential
resource on a case-by-case basis.
Comment: Western should compare the full cost of each proposal over
the life of a contract and choose the proposal that will be the most
cost effective. Another noted that the cost of coal will be increasing
in the future, and this should be considered in Western's long-term
planning.
Response: In response to several comments urging additional
criteria, Western determined the existing principles are flexible and
broad enough to accommodate the different circumstances that exist
among various potential long-term, purchase power options. In
conjunction with Western's customers and in an open and transparent
process, these principles will be used to examine and properly consider
each potential resource acquisition.
Comment: Western, as a government entity, needs to ensure that
power purchases minimize adverse impacts to the environment and should
ensure 25 percent of its energy purchase comes from renewable energy
resource by 2025.
Response: Western intends to consider renewable resources for
future, long-term, resource acquisitions; however, a pre-commitment to
purchase power from any specific resource type, regardless of price,
runs counter to Western's authority. Western is required to conduct its
business in accordance with applicable law. Specifically, Western
markets Federal hydroelectric power in a manner to encourage the most
widespread use at the lowest possible rates to consumers consistent
with sound business principles.
Comment: Western should include evaluation of externalities such as
health costs, costs of environmental damage, and climate change for its
purchases.
Response: The evaluation of these types of items is included in
Western's existing principles.
Comment: When Western purchases power resources, it should take all
reasonable steps to minimize adverse environmental impacts by
purchasing clean, renewable energy such as solar.
Response: Western will continue to consider potential resources,
including clean, renewable energy, for long-term purchases under its
existing principles.
Comment: Concerning Criterion 5 (i)--``Transmission,'' does Western
[[Page 56481]]
envision this was intended only to assess whether existing transmission
would be available to deliver a resource or a broader assessment that
would include the difficulty/cost of constructing new transmission to
facilitate delivery of the resource in a timely manner?
Response: Transmission delivery capability is a necessary component
of any energy purchase, and consideration of that aspect is critical.
Western has always considered this aspect, which would include
evaluating the potential of new transmission, when acquiring resources.
Comment: Improvements to Western's IRP Principles should apply not
only to long-term purchases (5-years or more), but to short-term
purchases as well.
Response: Western is not changing its acquisition principles for
acquisition of resources for more than 5 years. Applying these same
criteria to short-term purchases is not practical due to the quick
turnaround necessary for daily and monthly purchases. The existing
Final Principles of IRP require significant evaluation and analysis and
are not conducive to a short-term resource acquisition process. In its
June 9, 1995, Federal Register notice (60 FR 30533), Western responded
to a similar comment and stated that ``Western believes that it is
important to maintain flexibility within these principles.''
Comment: Western should insert the following language to Principle
No. 1: ``In determining the sources of power Western will deliver to
its customers under all existing and new contracts [to make up for
shortfalls in Federal hydropower generation][sic], Western will
evaluate energy savings programs, customer demand response programs,
and renewable energy generation alongside fossil resources, using
consistent and transparent criteria that treat these resources
objectively.''
Response: Western is not changing its acquisition principles for
acquisition of resources. The existing principles include renewable
resource options, which will be considered in relation to the needs of
each respective region.
Comment: Western should affirmatively commit to meet a significant
part of its long-term, power-purchase needs from solar and other
renewable resources within a year. Western should conduct a public
process to identify the quantity and type of renewable power each
Western regional project office should purchase through competitive
processes. This effort should culminate with the execution of long-
term, purchase-power contracts for both central station and distributed
renewable power resources. Western should, within a year, set a
specific renewable target to meet (e.g., 25 percent by 2025).
Response: Western will evaluate the resource used to meet any long-
term, power-purchase needs using the existing principles, including
renewable power, within the respective region with a long-term resource
need.
Comment: We support Western's proposed changes to its IRP Policy
and with Western's definition of Criterion 5 (b)--``Dependability;''
Criterion 5 (d)--``Diversity;'' Criterion 5 (f)--``Indian Preference;''
and Criterion 5 (i)--``Transmission Availability,'' and support
minimized transmission losses.
Response: Western appreciates the comment, but has determined not
to revise the existing principles.
Comment: Technological changes have made wind and photovoltaic
energy more dependable and dispatchable. Renewables offer more long-
term reliability in terms of risk and are a good replacement for fossil
fuels. Long-term contracts promote the certainty needed for capital
investments.
Response: Western appreciates the comment and understands the
benefits of renewable energy.
Comment: Leaving the resource evaluation criteria more general will
provide the maximum flexibility for any specific long-term resource
procurement.
Response: Western determined the existing acquisition principles
strike the appropriate balance between allowing regional flexibility
and providing general guidance and has determined not to revise the
acquisition principles.
Revised Principles of Integrated Resource Planning Related for Use in
Resource Acquisition and Transmission Planning
Accordingly, the Western Area Power Administration amends its Final
Principles of IRP by eliminating entirely the requirements in the
section titled: ``II. Transmission Planning Principles:'' No changes
will be made to the section titled: ``I. Resource Acquisition
Principles:''
Procedure Requirements
Environmental Evaluation
Western's notice to revise the Final Principles of IRP is an
administrative action covered by an existing NEPA categorical
exclusion. A categorical exclusion has been prepared and executed for
this process. Once project-specific actions are identified under the
Revised Final Principles of IRP and the project-specific evaluation
developed through the existing process, those actions would be
individually subject to the appropriate level of NEPA review. Factors
affecting the level of NEPA review include whether the project-specific
action would integrate a new generation resource, precipitate changes
to the transmission system, or change the normal operating limits of
existing generation resources.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this document by
the Office of Management and Budget is required.
List of Subjects in 10 CFR Part 905
Electric power, Electric utilities, Energy conservation, Reporting
and recordkeeping requirements.
Dated: September 11, 2014.
Mark A. Gabriel,
Administrator.
For the reasons set forth in the preamble, the Department of Energy
amends Part 905 of title 10 of the Code of Federal Regulations as set
forth below.
PART 905--ENERGY PLANNING AND MANAGEMENT PROGRAM
0
1. The authority citation for part 905 continues to read as follows:
Authority: 42 U.S.C. 7152, 7191; 42 U.S.C. 7275-7276c.
0
2. Add subpart E to read as follows:
Subpart E--Final Principles of Integrated Resource Planning for Western
Resource Acquisition
Sec.
905.50 Resource acquisition principles.
905.51 Transmission planning principles.
Subpart E--Final Principles of Integrated Resource Planning for
Western Resource Acquisition
Sec. 905.50 Resource acquisition principles.
Western's resource acquisition activities will be determined by
project-specific power marketing plans, hydropower production
capability, and the application of the following principles of IRP:
(a) Western will consider a full range of resource options, both
supply-side and demand-side, as well as renewable resource options.
(b) On a project-by-project basis, Western, through a public
process involving interested stakeholders will develop criteria to be
used in evaluating power resource alternatives.
(c) Evaluation criteria will address cost, environmental impact,
[[Page 56482]]
dependability, dispatchability, risk, diversity, and the ability to
verify demand-side alternatives. Evaluation criteria will be reviewed
as the need for resources changes or when long-term commitments to
purchase power expire.
(d) Evaluation criteria will be consistent with Western's power
marketing policy, which states that Federal power is to be marketed in
such a manner as to encourage the most widespread use thereof at the
lowest possible rates to consumers consistent with sound business
principles. The policy, found in Delegation Order No. 00-037.00A, is
derived from statutes authorizing the sale of power from both
Department of the Army and Department of the Interior hydroelectric
projects. These statutes include section 5 of the Flood Control Act of
1944, 16 U.S.C. 825(s) and section 9(c) of the Reclamation Project Act
of 1939.
(e) Resource acquisition planning will be consistent with power
marketing plans and associated contractual obligations.
(f) Resource acquisition decisions will be documented and made
available to Western's power customers and the public.
Sec. 905.51 Transmission planning principles.
Western's transmission planning is conducted to assess the
capability of the Federal transmission system to provide adequate and
reliable electric service to its customers and the interconnected power
grid. These planning efforts occur as part of its participation in
regional and sub-regional planning entities as well as Western's Open
Access Transmission Tariff.
[FR Doc. 2014-22367 Filed 9-19-14; 8:45 am]
BILLING CODE 6450-01-P