[Federal Register Volume 86, Number 170 (Tuesday, September 7, 2021)]
[Notices]
[Pages 50105-50109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19239]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


2021 Continuation of Temporary Power Sales Program

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice that new applications will be accepted for the 
Southwestern Power Administration Temporary Power Sales Program for 
2021.

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SUMMARY: Southwestern Power Administration (Southwestern) is accepting 
new applications under its Temporary Power Sales Program for 2021. 
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 September 7, 2021 and ending on 
October 22, 2021.

ADDRESSES: Completed forms and any questions or comments should be 
submitted to Ms. Fritha Ohlson, Senior Vice President and Chief 
Operating Officer (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 or email: [email protected].

SUPPLEMENTARY INFORMATION: Southwestern markets hydroelectric power 
pursuant to section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s) 
from 24 multi-purpose reservoir projects operated by the U.S. Army 
Corps of Engineers. These projects are located in Arkansas, Missouri, 
Oklahoma, and Texas. The Southwestern marketing area includes these 
states, plus Kansas and Louisiana.

Program Background

    On June 18, 1987, Southwestern implemented its Temporary Power 
Sales Program, hereinafter referred to as ``the Program'' (52 FR 
23206). The notice implementing the Program is hereinafter referred to 
as ``the 1987 FRN.'' The Program allows existing Southwestern customers 
to make all or a portion of their 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 or cooperative 
electric utility systems are available to purchase such federal 
hydroelectric power and energy. See 52 FR at 23206 at 23207. Entities 
participating in the Program are referred to as ``loaners'' and 
``borrowers.''
    In response to the 1987 FRN, Southwestern received nine borrower 
applications and two loaner applications within the period of notice of 
the 1987 FRN, which began June 18, 1987 and ended August 31, 1987. Of 
the applications received, Southwestern made one match between two 
loaners and one borrower for a total of 0.7 megawatts (MW) for a term 
to continue on a year-to-year basis until terminated by the loaner, the 
borrower, or Southwestern. (The match was ultimately dissolved on 
August 17, 2005.)
    On October 14, 1988, Southwestern sent a letter to its customers 
soliciting additional interest in the Program and indicating 
Southwestern's intention to maintain electric utility data on a 
biennial basis, with the lists of loaners and borrowers to be renewed 
every two years.
    In response to the October 14, 1988 letter, Southwestern received 
two additional borrower applications and no additional loaner 
applications. Implementation of the Program continued with two internal 
memoranda to the file, the first dated August 9, 1989, and the second 
dated January 17, 1992. These memoranda summarized the results of two 
separate reviews. Both reviews acknowledged minimal interest in the 
Program but recommended continuing the Program pending the

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results of future reviews. Records indicate that no additional reviews 
occurred until 2019.

2019 Review and Summary

    Southwestern initiated its 2019 review of the Program after 
receiving an offer for a loan from the Southwestern customers receiving 
the output of the Robert D. Willis Hydropower Project (Willis). These 
customers offered all capacity and energy from Willis for loan for a 
duration to be determined.
    In response to the loan offer, Southwestern contacted the six 
remaining participants in the Program to solicit their interest in the 
output of Willis. All six participants declined.
    On October 25, 2019, Southwestern announced a continuation of the 
Program, including a call for new applicants (84 FR 57410). The 2019 
notice continuing the Program is hereinafter referred to as ``the 2019 
FRN.'' Southwestern received 20 applications within the period of 
notice of the 2019 FRN, which began October 25, 2019 and ended December 
9, 2019. Of the applications received, Southwestern matched two pairs 
of loaners and borrowers: One for 2.0 MW for a ten-year term, and one 
for 1.6 MW for a seven-year term.
    Southwestern also received applications after the period of notice 
with the understanding that the applications may be eligible for 
matching in the interim period between biennial reviews. In November 
2020, Southwestern determined that it would postpone consideration of 
these interim applications until the 2021 review. Applicants were 
notified of this decision by letter dated December 7, 2020, which also 
informed the applicants that their applications would remain on file.

Summary of Matching Methodology

    Records indicate that, prior to the 2019 review, there appeared to 
be no formal matching methodology other than consideration of 
preference entity status, chronological receipt, and acceptance of 
applications on an ad hoc basis. For the 2019 review, Southwestern 
analyzed its existing marketing documents and identified main 
principles that occurred throughout, including preference entity 
status; distribution by state; widespread use; transmission; and 
chronological receipt. Since the concept of preference entity status is 
established in statutory authorities and within the Program itself, it 
was considered first and foremost before applying the other principles.
    After determining preference entity status, and starting with the 
principle that occurred the most and working down the list, 
Southwestern ranked the borrowers according to how well their 
respective applications matched a given principle. For example, if a 
borrower was located in the same state as a loaner, that borrower got a 
credit for the ``distribution by state'' principle. This procedure was 
followed until ties were broken between potential borrowers.

2021 Review and Proposed Program Change

    Although Southwestern will continue to apply the principles 
established in the 2019 review to its 2021 review, Southwestern has 
identified a need to further clarify how it establishes ``chronological 
receipt.'' For the purposes of the 2021 matching process, Southwestern 
will determine chronological receipt as follows:
    1. The six entities currently considered active under the 1987 FRN 
will have a chronological receipt date assigned in one of two ways: If 
an entity submitted a new application under the 2019 FRN, that entity's 
application will be assigned the chronological receipt date of the new 
application. If an entity did not submit a new application under the 
2019 FRN, that entity's existing application will be assigned a new 
chronological receipt date of April 6, 2021, which is the date 
Southwestern began its 2021 review.
    2. All entities that submitted applications under the 2019 FRN 
during the period of notice and that have not voluntarily withdrawn 
their respective applications will remain in the Program with their 
original chronological receipt dates.
    3. All entities that submitted applications outside the period of 
notice of the 2019 FRN will remain in the Program with their original 
chronological receipt dates.
    4. All entities that submit new applications in response to this 
Federal Register notice will be assigned new chronological receipt 
dates that will supersede any previous receipt date.
    At the conclusion of the 2021 matching process, Southwestern 
intends to implement the following changes to simplify the Program, 
increase transparency, and reduce unnecessary confusion:
    1. All unmatched applicants will be withdrawn from the Program and 
are free to re-apply during any future period of notice.
    2. Southwestern will no longer consider applications submitted 
outside the period of notice of this or any future Federal Register 
notice.

Procedures for Applying to the Program

    Interested parties are requested to complete Resource Data Forms 
containing information pertinent to the Program. The Resource Data 
Forms will be accepted during the period of notice specified in this 
Federal Register notice (see DATES). Resource Data Forms received after 
that period will not be accepted. Receipt date of a Resource Data Form 
will be based on the earliest date Southwestern received the 
transmittal instrument conveying the Resource Data Form: For example, 
the earlier of the ``Received'' date of an email if conveyed through 
email; the received date stamp from Southwestern's mail room of a hard 
copy letter if conveyed through the U.S. Mail; or the received log date 
from Southwestern's mail room of a package or letter if conveyed 
through a delivery service or certified U.S. Mail.
    Each applicant will be sent a confirmation from Southwestern of the 
receipt of its application, and the confirmation will include the 
entity name to be associated with the application, the loan or borrow 
details, and the date of receipt. Applicants will be asked to concur 
with the confirmation in writing.
    Following the 2021 matching process, notification of the results 
will be sent to all applicants. The notification will include a summary 
of matches made, a notification that all applications are withdrawn 
from the Program as of the date of the notification, and an 
announcement that new applications will be solicited via Federal 
Register notice following the next review, tentatively scheduled for 
2023.
    Submission of Resource Data Forms in no way obligates an applicant 
to loan or borrow under the 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 Program. Such sales will be 
made at the sole discretion of Southwestern.
    Allocations made available to Southwestern under the Program will 
be sold on a temporary basis, and for an initial period of not less 
than one (1) year, provided the selected borrower(s) 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 that new applications will 
be accepted for the Southwestern Power Administration Temporary Power 
Sales Program.''

[[Page 50107]]

    Electric utility organizations interested in participating in the 
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 
the Southwestern website 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.

Environmental Impact

    Southwestern previously determined that the action of creating the 
Program and accepting new applications thereunder does not have a 
significant effect on the environment since peaking sales made under 
the Program will merely replace other peaking sales and resulting 
reservoir operations will not be affected. Southwestern has further 
determined that the action fits within the class of categorically 
excluded actions as listed in appendix B to subpart D of 10 CFR part 
1021, DOE's Implementing Procedures and Guidelines of the National 
Environmental Policy Act of 1969, as amended (42 U.S.C. 4321-4347): 
Categorical exclusions applicable to B4.1, ``Contracts, policies, and 
marketing and allocation plans for electric power,'' and B4.4, ``Power 
marketing services and activities.'' On May 26, 2021, Southwestern 
determined that categorical exclusions B4.1 and B4.4 apply to the 
current action.

Signing Authority

    This document of the Department of Energy was signed on August 30, 
2021, by Mike Wech, Administrator, Southwestern Power Administration, 
pursuant to delegated authority from the Secretary of Energy. That 
document, with the original signature and date, is maintained by DOE. 
For administrative purposes only, and in compliance with requirements 
of the Office of the Federal Register, the undersigned DOE Federal 
Register Liaison Officer has been authorized to sign and submit the 
document in electronic format for publication, as an official document 
of DOE. This administrative process in no way alters the legal effect 
of this document upon publication in the Federal Register.

    Signed in Washington, DC, on September 1, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
BILLING CODE 6450-01-P

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[FR Doc. 2021-19239 Filed 9-3-21; 8:45 am]
BILLING CODE 6450-01-C