[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
[[Page 57411]]
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
[[Page 57414]]
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