[Federal Register Volume 80, Number 241 (Wednesday, December 16, 2015)]
[Notices]
[Pages 78222-78224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31619]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Salt Lake City Area Integrated Projects and Colorado River 
Storage Project 2025 General Power Marketing Criteria

AGENCY: Western Area Power Administration, Department of Energy (DOE).

ACTION: Notice of the Proposed 2025 Marketing Plan and announcement of 
public information and comment forums.

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SUMMARY: Western Area Power Administration (Western), Colorado River 
Storage Project Management Center (CRSP MC), a Federal power marketing 
agency of the Department of Energy, is seeking comments on its Proposed 
2025 Marketing Plan for the Salt Lake City Area Integrated Projects 
(SLCA/IP). The current SLCA/IP marketing plan will expire on September 
30, 2024. The Proposed General Power Marketing Criteria provides the 
basis for marketing the long-term, firm hydroelectric resources of the 
SLCA/IP to be effective October 1, 2024. The Proposed General Power 
Marketing Criteria for the SLCA/IP are published herein. This Federal 
Register notice (FRN) formally initiates Western's public process and 
request for public comments. Western will prepare and publish the final 
2025 General Power Marketing Criteria after public comments on the 
criteria are considered. The Energy Planning and Management Program as 
set forth in 10 CFR part 905 is not specifically applicable to the 
SLCA/IP; however, Western used the Power Marketing Initiative outlined 
in Subpart C for general guidance in developing a framework for this 
proposal. This FRN is not a call for applications. A call for 
applications from those interested in an allocation of SLCA/IP power 
will occur in a future notice.

DATES: A public information forum is scheduled for Thursday, January 
14, 2016, from 11 a.m. to 1 p.m. MST at the Ramada Inn, 5575 West 
Amelia Earhart Drive, Salt Lake City, Utah. The public comment forum is 
scheduled for Wednesday, February 17, 2016, from 11 a.m. to 1 p.m. MST 
at the Ramada Inn, 5575 West Amelia Earhart Drive, Salt Lake City, 
Utah. Written comments may be submitted to Western on or before March 
30, 2016.
    Responses to questions about the proposed criteria unanswered at 
the forum will be provided in writing within a reasonable period of 
time. An opportunity will be given to all interested parties to present 
written or oral statements at the public comment forum. The forums will 
be transcribed, and copies will be available upon request. Any fees 
required by the transcription firm to provide a transcribed copy will 
be the responsibility of the requestor. Additionally, Western is 
available to consult on a government-to-government basis with Tribes 
that express interest in doing so.

ADDRESSES: Submit written comments regarding the proposed 2025 General 
Power Marketing Criteria to Ms. Lynn Jeka, CRSP Manager, Western Area 
Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake 
City, UT 84111-1580. Western's representatives will explain the 
proposed criteria and answer questions. Comments may also be faxed to 
(801) 524-5017, or emailed to [email protected].

FOR FURTHER INFORMATION CONTACT: Mr. Parker Wicks, Public Utilities 
Specialist, or Mr. Steve Mullen, Public Utilities Specialist, at 
Western Area Power Administration, CRSP Management Center, 150 East 
Social Hall Avenue, Suite 300, Salt Lake City, UT 84111-1580, telephone 
(801) 524-5493, or email to [email protected]. Information can also 
be found at https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/power-marketing.aspx.

SUPPLEMENTARY INFORMATION: Brief descriptions of the projects included 
in the SLCA/IP are provided below:

Colorado River Storage Project

    Authorized in 1956, the CRSP and participating projects initiated 
the comprehensive development and use of water resources of the Upper 
Colorado River. The CRSP is comprised of the Glen Canyon, Flaming 
Gorge, Blue Mesa, Crystal, and Morrow Point dams and powerplants. CRSP 
storage units stabilize the erratic flows of the Colorado River and its 
tributaries so annual water delivery commitments to the Lower Colorado 
River Basin, as well as to farmers, municipalities, and industries in 
the Upper Basin, can be met. Delivery of this water to consumers is 
accomplished, in part, through the participating projects discussed 
below. Additional project development may occur in future years. 
Initial hydroelectric generation began at the CRSP facilities in 1963. 
The maximum operating capacity of the five original CRSP powerplants is 
currently about 1,760 MW. The average annual generation over the 20-
year period from 1994 through 2014 was about 5,208,238 MWh.

Participating Projects

    Seedskadee Project (Fontenelle Powerplant): The Seedskadee Project 
was authorized as one of the initial group of participating projects 
authorized with the CRSP in 1956. The Fontenelle Dam, powerplant, and 
reservoir are the principal features of the Seedskadee Project. The 
powerplant commenced operation in May 1968. The maximum operating 
capacity of Fontenelle Powerplant is 10 MW. The average annual 
generation from 1994-2014 was 53,477 MWh.
    Dolores Project (McPhee Dam and Towaoc Canal Powerplants): The 
Dolores Project was authorized by the Colorado River Basin Act of 
September 30, 1968, as a participating project under the Colorado River 
Storage Project Act. The maximum operating capacity of the two 
powerplants is 12.8 MW, and the combined average annual output of 
McPhee Dam and Towaoc Canal powerplants from 1994-2014 was 18,161 MWh.

Integrated Projects

    Western consolidated and operationally integrated the Collbran and 
Rio Grande projects with CRSP beginning on October 1, 1987. These 
integrated projects have retained their separate financial obligations 
for repayment; however, an SLCA/IP rate is set to recover revenues to 
meet the repayment requirements of all projects. The maximum operating 
capacity of the eleven SLCA/IP powerplants is 1,818.6 MW, and the 
average annual generation from 1994-2014 was about 5,635,057 MWh. The 
SLCA/IP resources are currently marketed to approximately 140 long-term 
customers, and many more electric service providers enjoy this power 
indirectly through parent organizations that are direct customers of 
the SLCA/IP. Existing contracts will terminate at the end of the 
September 2024 billing period.
    Collbran Project (Upper Molina and Lower Molina Powerplants): 
Authorized in 1952 and in service since 1962. The maximum operating 
capacity of the two powerplants is presently 13.5 MW. The average 
annual generation from 1994-2014 was 41,915 MWh.
    Rio Grande Project (Elephant Butte Powerplant): The Rio Grande 
Project was authorized in 1905, and the

[[Page 78223]]

powerplant went into service in 1940. The maximum operating capacity of 
the Elephant Butte Powerplant is 27.0 MW. The average annual generation 
was 66,743 MWh from 1994-2014.

Current Marketing Plan Background

    The final Post-1989 General Power Marketing and Allocation 
Criteria, SLCA/IP (Post-1989 Plan), was published in the Federal 
Register (51 FR 4844-4870, February 7, 1986) and provided the marketing 
plan principles used to market what is now referred to as the SLCA/IP 
firm hydropower resources. The firm electric service contracts 
associated with the Post-1989 Plan were initially to expire in 2004. 
Western's Energy Planning and Management Program (EPAMP) Final Rule, 
Subpart C--Power Marketing Initiative was adopted for the SLCA/IP as 
published in the Federal Register (64 FR 34414-34417, Friday, June 25, 
1999), which extended the firm electric contracts associated with the 
Post-1989 Plan through September 30, 2024, and also established a Post-
2004 resource pool. The current marketing plan is inclusive of the 
Post-1989 Plan as extended and amended by EPAMP and the Post-2004 Power 
Marketing Initiative.

Proposed 2025 General Power Marketing Criteria Background

    During the summer of 2015, Western held four meetings to initiate 
informal discussions with current SLCA/IP firm electric service 
customers and their representatives. The meetings were held in Phoenix, 
Arizona; Lakewood, Colorado; Albuquerque, New Mexico; and Salt Lake 
City, Utah. These meetings provided customers the opportunity to review 
current marketing plan principles and provide informal input to Western 
for consideration in this Proposed 2025 Marketing Plan. Some of the key 
marketing plan principles discussed at the meetings included marketing 
area, contract term, resource pools, and marketable resource. The main 
input Western received from the commenters during these meetings was 
that the Post-1989 Plan worked well and that Western should make as few 
changes as possible. Western agrees and proposes to keep the general 
contract format and maintain the existing allocations with its current 
customers. Western is also proposing that, if after it completes its 
analysis there is additional resource available, a power pool of 2 
percent be created to serve new customers. Although Western's existing 
customers requested that no new power pool be created and that any 
additional marketable resource be allocated to them to offset 
reductions in their allocations due to the 1996 Glen Canyon Dam 
Environmental Impact Statement Record of Decision, Western determined 
it could support additional wide-spread use by allocating any 
additional resource to benefit new customers rather than try to 
distribute a small amount of power among the approximately 135 existing 
customers. Western considered the feedback it received in developing 
the Proposed 2025 Marketing Plan, outlined below.

Proposed 2025 General Power Marketing Criteria

    Western's Proposed 2025 Power Marketing Plan will remain 
predominantly unchanged from the Post-1989 General Power Marketing 
Criteria and Post-2004 Power Marketing Initiative. The Marketing Plan 
principles are as follows:

Proposed Marketing Plan Principles

    1. Contract Term: A 40-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, 2064.
    2. Marketing Area: The Proposed 2025 Marketing Plan supports 
continuing the current SLCA/IP marketing area, which is divided into 
Northern and Southern Divisions.
    A. The Northern Division consists of the states of Colorado, New 
Mexico, Utah, and Wyoming; the City of Page, Arizona; a portion of the 
area in Arizona which lies in the drainage area of the Upper Colorado 
River Basin to be served by the Navajo Tribal Utility Authority; and 
White Pine County and portions of Elko and Eureka counties in Nevada.
    B. The Southern Division consists of the remaining portion of the 
state of Arizona and that part of the state of Nevada in Clark, 
Lincoln, and Nye counties that comprise the southern portion of the 
state.
    3. New Resource Pool: Currently, the CRSP MC is doing extensive 
modeling to determine the amount of SLCA/IP resource that will be 
available for the 2025 Marketing Plan. Western expects that capacity 
and energy will be available above what is currently allocated to 
existing customers. If so, the 2025 Marketing Plan will provide a 2 
percent resource pool of the modeled marketable resource. The 
allocation of this resource would occur one time at the beginning of 
the contract term, October 1, 2024. If, after the analysis of available 
marketable resource is completed, there is less than 2 percent 
available for a resource pool, then no resource pool will be made 
available to new customers. Western's determination of the availability 
of a resource pool will be announced through an FRN. Depending upon the 
timing, it may be announced in conjunction with another action (i.e., 
Final 2025 Marketing Plan) or it may be announced in a separate FRN.
    4. Western will provide new allocations only to eligible preference 
entities in the Northern Division and Native American tribes in either 
the Northern or Southern Division. Western will give priority to those 
preference entities that currently do not receive the benefit of 
Federal hydropower. If the applicant has met the eligibility criteria, 
Western, through the public process, will determine the amount of 
power, if any, to allocate in accordance with the marketing criteria 
and administrative discretion under Reclamation Law.
    5. Eligible applicants, except Native American tribes, must be 
ready, willing, and able to receive and distribute or use power from 
Western. Ready, willing, and able means the eligible applicant has the 
facilities needed for the receipt of power or has made the necessary 
arrangements for transmission and/or distribution service, and its 
power supply contracts with third parties permit the delivery of 
Western's power.
    6. Eligible applicants must have the necessary arrangements for 
transmission and/or distribution service in place by October 1, 2023.
    7. An eligible 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.
    8. In determining allocations, Western will give priority 
consideration in the following order to entities satisfying these 
marketing criteria:
    A. Federally recognized Native American tribes.
    B. Municipal corporations and political subdivisions including 
irrigation or other districts, municipalities, and other governmental 
organizations that have electric utility status by October 1, 2023. 
``Electric 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.
    C. Electric cooperatives and public utilities, other than electric 
utilities, that are recognized as utilities by their applicable legal 
authorities, are nonprofit in nature, have electrical facilities, and 
are independently governed and financed.
    D. Other eligible applicants.

[[Page 78224]]

    9. In determining allocations, Western will consider existing 
Federal power resource allocations of the applicants.
    10. Western will base allocations to Native American tribes on 
actual loads experienced in the most recent calendar year. Western may 
use estimated load values if actual load data are not available. 
Western will evaluate and may adjust inconsistent estimates during the 
allocation process. Western is available to assist tribes in developing 
load estimates.
    11. Western will base allocations to eligible applicants on the 
actual loads experienced in the most recent calendar year and will 
apply current marketing criteria to these loads.
    12. The minimum allocation will be 100 kW.
    13. Contractors must execute electric service contracts within 6 
months of receiving a contract offer from Western, unless Western 
agrees otherwise in writing.
    14. If unanticipated obstacles to the delivery of electric service 
to a Native American tribe arise, Western retains the right to provide 
the economic benefit of the resource directly to the tribe.
    15. Existing Marketable Resource: Dependent upon available 
resource, Western proposes extending the existing contract rates of 
delivery commitments, with associated energy, to the existing SLCA/IP 
long-term, firm power customers.
    16. Hydrology and River Operations Withdrawal Provision: Western 
will reserve the right to adjust, at its discretion and sole 
determination, the contract rate of delivery on 5 years' advance 
written notice in response to changes in hydrology and river 
operations. Any such adjustments would occur after an appropriate 
public process.
    17. Service Seasons: The Proposed 2025 Marketing Plan supports 
continuing the current SLCA/IP summer and winter seasons.
    A. Summer Season: The 6-month period from the first day of the 
April billing period through the last day of the September billing 
period in any calendar year.
    B. Winter Season: The 6-month period from the first day of the 
October billing period of any calendar year through the last day of the 
March billing period of the next succeeding calendar year.
    18. Retention of Existing Contract Provisions: The Proposed 2025 
Marketing Plan supports using the existing SLCA/IP firm electric 
service contract provisions with only minor modifications. Customer 
Displacement Power (CDP) and Western Replacement Power (WRP) contract 
provisions will continue to be available in the new SLCA/IP firm 
electric service contracts. The CDP and WRP provisions allow customers, 
at their discretion, to augment hydropower allocations with purchase 
power. Western reserves enough capacity on the CRSP transmission system 
to deliver the maximum amount of hydropower the system is capable of 
generating, which under certain conditions can sometime occur. In times 
when hydropower deliveries are lower, this transmission capacity can be 
made available for use by the customers. Under CDP, customers may elect 
to use this reserved transmission capacity to deliver their own energy 
resources in hours that it is needed to augment the hydropower 
deliveries. WRP is similar to CDP, but customers request that Western 
act as their agent and purchase energy available on the market to 
augment hydropower deliveries.

Availability of Information

    Documents developed or retained by Western during this public 
process will be available, by appointment, for inspection and copying 
at the CRSP MC, located at 150 East Social Hall Avenue, Suite 300, Salt 
Lake City, Utah. Western will post information concerning the Proposed 
2025 Marketing Plan on its Web site at: https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/power-marketing.aspx. Written comments 
received as part of the 2025 Marketing Plan formal public process will 
be available for viewing on the Web site.

Procedural 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: December 8, 2015.
Mark A. Gabriel,
Administrator.
[FR Doc. 2015-31619 Filed 12-15-15; 8:45 am]
BILLING CODE 6450-01-P