[Federal Register Volume 84, Number 207 (Friday, October 25, 2019)]
[Notices]
[Pages 57410-57414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23373]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Continuation of Temporary Power Sales Program

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of acceptance of new applications under Southwestern 
Power Administration's Temporary Power Sales Program.

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SUMMARY: Southwestern Power Administration (Southwestern) is accepting 
new applications under its Temporary Power Sales Program. Electric 
utility organizations interested in participating in the Temporary 
Power Sales Program should notify Southwestern of their interest by 
providing the information requested in the enclosed Resource Data Form 
B-2 and/or Resource Data Form L-2 to Southwestern.

DATES: Completed forms (Resource Data Form B-2 and/or Resource Data 
Form L-2) will be accepted beginning on October 25, 2019 and ending on 
December 9, 2019.

ADDRESSES: Completed forms and any questions or comments should be 
submitted to Ms. Fritha Ohlson, Senior Vice President/COO, Southwestern 
Power Administration, U.S. Department of Energy, 1 W 3rd St., Suite 
1600, Tulsa, Oklahoma 74103.

FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice 
President/COO, 918-595-6684, [email protected], facsimile 
transmission 918-595-6656.

SUPPLEMENTARY INFORMATION: Southwestern markets Federal hydroelectric 
power and energy from projects constructed and operated by the U.S. 
Army Corps of Engineers located in the states of Arkansas, Missouri, 
Oklahoma, and Texas, under the provisions of Section 5 of the Flood 
Control Act of 1944 (16 U.S.C. 825s), as amended, in an area which 
includes the previously-mentioned states plus Kansas and Louisiana.
    By Federal Register notice dated June 18, 1987 (52 FR 23206) (1987 
FRN), Southwestern implemented the Temporary Power Sales Program, 
wherein an existing Southwestern customer can make all or a portion of 
its

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allocated Federal hydroelectric power and energy from Southwestern 
(allocation) available to Southwestern for temporary sale to others in 
the following priority: (1) Public body and cooperative electric 
utility systems that are present or potential customers (including 
joint action agencies and any other public body and/or cooperative 
electric utility organizations that may be able to distribute the 
benefits of Federal hydroelectric power and energy to said public body 
and cooperative electric utility systems), and (2) electric utilities 
other than public body and/or cooperative electric utility systems to 
be selected if no public body and cooperative electric utility systems 
are available to purchase such Federal hydroelectric power and energy. 
Entities participating in the program are referred to as ``loaners'' 
and ``borrowers.''
    Southwestern followed up on the Temporary Power Sales Program with 
a letter sent to its customers October 14, 1988 (October 1988 letter). 
The October 1988 letter solicited additional interest in the Temporary 
Power Sales Program and stated Southwestern's intention of maintaining 
electric utility data on a biennial basis, with the lists of loaners 
and borrowers to be renewed every two years. To date, Southwestern has 
reviewed the program three times: In 1989, in 1992, and in 2019.
    The first two reviews of the program yielded no change to the lists 
of loaners and borrowers. The latest review in 2019 resulted in the 
deletion of participants whose applications had expired based on the 
``Stop Borrowing'' date in the Resource Data Form, leaving six 
participants still active in the program.
    The 2019 review was initiated after Southwestern received an offer 
of a loan under the Temporary Power Sales Program from Southwestern's 
customers which receive the output of the Robert D. Willis Hydropower 
Project (Willis), located in southeast Texas. These customers offered 
all capacity and energy from Willis for loan to others for a duration 
to be determined. Operating characteristics of Willis are enclosed for 
reference.
    In response to the loan offer, Southwestern notified the six 
remaining participants in the program and solicited their interest in 
the output of Willis. All six participants expressed their interest in 
staying in the program, but none were interested in the output of 
Willis.
    Southwestern has been notified recently that two other customers 
are interested in making all or a portion of their respective 
allocations available to Southwestern for sale under the Temporary 
Power Sales Program.
    Based on the potential Willis loan and the potential loan from 
these two other customers, Southwestern estimates that there may be up 
to 10 megawatts (MW) of Federal hydroelectric power and associated 
energy available for sale under one or more of Southwestern's rate 
schedules governing the sale and purchase of Federal hydroelectric 
power and energy. After the close of this request for applications to 
the Temporary Power Sales Program, Southwestern will have more certain 
information on the allocations available for sale under the Temporary 
Power Sales Program.
    Southwestern intends to use the procedure described in the 1987 FRN 
to implement the acceptance of new applications under the Temporary 
Power Sales Program, wherein the selection of loaners and borrowers is 
based on data provided by the participants. The selection process may 
generate a new list of applicants under the program. The six entities 
currently considered to be active in the program will be allowed to 
remain in the program with their original chronological receipt dates 
until the earlier of (1) the date an entity submits a new application; 
or (2) the date of the next biennial review.
    Interested parties are requested to complete Resource Data Forms 
containing information pertinent to the Temporary Power Sales Program. 
The Resource Data Forms will be accepted during the period specified in 
this Federal Register Notice (see DATES). Resource Data Forms received 
after that period will be accepted for chronological receipt date 
purposes but may not be considered for participation in the program 
until such time as Southwestern conducts another review of the 
Temporary Power Sales Program, tentatively scheduled for 2021.
    Submission of Resource Data Forms in no way obligates an applicant 
to loan or borrow under the Temporary Power Sales Program. If a match 
is identified, Southwestern will work with the loaner and borrower to 
document the sale. Conversely, submission of Resource Data Forms in no 
way obligates Southwestern to make any sales under the Temporary Power 
Sales Program. Such sales will be made at the sole discretion of 
Southwestern.
    Southwestern will analyze the information provided and, at its 
discretion, will match loaners and borrowers per the criteria 
identified herein. Only in the event that more than one loaner or 
borrower is available for the same temporary sale will a decision be 
made based on the chronological receipt of Resource Data Forms, 
including those still active under the original 1987 FRN or the October 
1988 letter.
    Allocations made available to Southwestern under the Temporary 
Power Sales Program will be sold on a temporary basis, and for an 
initial period of not less than one (1) year, provided the selected 
borrower or borrowers have, or must be able to arrange, the 
transmission rights to receive such Federal hydroelectric power and 
energy.
    Therefore, in accordance with the priority expressed herein, 
Southwestern is hereby issuing this ``Notice of Acceptance of New 
Applications Under Southwestern Power Administration's Temporary Power 
Sales Program.''
    Electric utility organizations interested in participating in the 
Temporary Power Sales Program should notify Southwestern of their 
interest by providing the information requested in the enclosed 
Resource Data Form B-2 and/or Resource Data Form L-2 to Southwestern 
(see DATES). To assist Southwestern in best matching loaners and 
borrowers, applicants are encouraged to use the ``Additional 
information'' section at the bottom of the forms to describe specific 
resources they want to borrow or loan. Fillable versions of these forms 
will also be made available on Southwestern's internet site at https://www.swpa.gov.
    Based on the responses received, Southwestern, at its sole 
discretion, may elect to hold one or more public meetings to afford all 
responders equal opportunity to have their responses addressed.

    Dated: October 10, 2019.
Mike Wech,
Administrator.

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[GRAPHIC] [TIFF OMITTED] TN25OC19.005

Robert D. Willis Hydropower Project Characteristics

Capacity and Sales Information

    Capacity: 7.4 Megawatts (MW).
    Annual Power Sales Rate (includes capacity and energy costs): 
$1,282,836/year.\1\
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    \1\ Under rate schedule RDW-15, currently in-effect through 
September 30, 2021.
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    Monthly Power Sales Rate (includes capacity and energy costs): 
$106,903/month.\1\

Energy Information

    Based on the historical \2\ actual average annual energy of 25,278 
Megawatt-hours (MWh) (3,349 hours), the composite cost is $50.75/MWh.
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    \2\ Historical period is calendar years 1990-2018.
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    Based on the historical \2\ actual maximum annual energy of 40,097 
MWh (5,455 hours), the composite cost is $31.99/MWh.
    Based on the historical \2\ actual minimum annual energy of 0 MWh 
(0 hours), the composite cost is $1,282,839 for no MWh.
    Based on the estimated \3\ annual energy of 37,260 MWh (5,069 
hours), the composite cost is $34.43/MWh.
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    \3\ Estimated annual energy is from a USACE planning study prior 
to project construction.
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Other Information

    The Robert D. Willis Hydropower Project has had operational 
challenges for the past 10 years. Approximately $7,090,000 of capital 
equipment repair

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and replacement, already included in the power sales rate listed above, 
needs to be undertaken to correct many of the challenges experienced at 
the project. It is estimated that this work will take a minimum of 
three years to complete.
    The point of delivery for the Robert D. Willis Hydropower Project 
is at the Robert D. Willis Hydropower Project switchyard, which is 
interconnected to the electric grid by a distribution system owned by 
Jasper-Newton Electric Cooperative. A separate agreement with Jasper-
Newton Electric Cooperative may be required to transmit the power and 
associated energy from the Robert D. Willis Hydropower Project to the 
Mid-Continent Independent System Operator (MISO).

[FR Doc. 2019-23373 Filed 10-24-19; 8:45 am]
 BILLING CODE 6450-01-P