[Federal Register: October 1, 2004 (Volume 69, Number 190)]
[Notices]
[Page 58900-58903]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01oc04-54]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Parker-Davis Project--Post-2008 Resource Pool
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed procedures and call for applications.
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SUMMARY: The Western Area Power Administration (Western), a Federal
power marketing agency of the Department of Energy (DOE), is seeking
comments on proposed procedures and calling for applications from
preference entities interested in an allocation of Federal power from
the Parker-Davis Project. Western's Energy Planning and Management
Program (Program) provides for establishing project-specific resource
pools and allocating power from these pools to preference contractors.
Under the Program, Western is proposing allocation criteria for
comment, and is also seeking applications from entities interested in a
Federal power resource pool allocation of the long-term marketable
resource of the Parker-Davis Project (P-DP) that will become available
October 1, 2008. Preference entities applying for an allocation of
power must submit formal applications as outlined below.
[[Page 58901]]
DATES: Entities interested in commenting on proposed procedures must
submit written comments to Western's Desert Southwest Regional Office
at the address below. Entities applying for an allocation of Western
power must submit an application to the address below. Western will
accept written comments and/or applications received on or before
December 30, 2004. Western reserves the right to not consider any
comments and/or applications received after this date. Western will
hold public information forums and public comment forums on the
proposed procedures and applications.
The public information forum dates are:
1. October 25, 2004, 1 p.m., Las Vegas, NV.
2. October 26, 2004, 1 p.m., Phoenix, AZ.
3. October 27, 2004, 1 p.m., Ontario, CA.
Following the public information forums, Western will hold three
public comment forums. The dates for these forums are as follows:
1. November 30, 2004, 1 p.m., Las Vegas, NV.
2. December 1, 2004, 1 p.m., Phoenix, AZ.
3. December 2, 2004, 1 p.m., Ontario, CA.
ADDRESSES: Submit applications for an allocation of Western power and
written comments regarding these proposed procedures to Mr. J. Tyler
Carlson, Regional Manager, Desert Southwest Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457. You may also fax
applications or comments to Western at (602) 352-2490 or e-mail them to
post2008pdp@wapa.gov. Application forms are available upon request or
may be accessed at http://www.wapa.gov/dsw/pwrmkt/FRN. Applicants are
encouraged to use the application form provided at the above Web site.
The public information and comment forum locations are:
1. Las Vegas--Las Vegas Tropicana, 3801 Las Vegas Boulevard South,
Las Vegas, NV.
2. Phoenix--Western Area Power Administration, Desert Southwest
Regional Office, 615 South 43rd Ave, Phoenix, AZ.
3. Ontario--Hilton Ontario Airport, 700 N. Haven Avenue, Ontario,
CA.
FOR FURTHER INFORMATION CONTACT: Roy Tinsley, Project Manager, Desert
Southwest Region, Western Area Power Administration, 615 South 43rd
Ave, Phoenix, AZ 85005, telephone (602) 352-2788, e-mail
post2008pdp@wapa.gov.
The current Parker-Davis Project (P-DP) marketing plan and related
information are available online at http://www.wapa.gov/dsw/pwrmkt.
Western will also post all public comments from this process on this
Web site after the close of the comment period.
SUPPLEMENTARY INFORMATION: On October 20, 1995, Western published the
Final Program Rule for the Program, which became effective on November
20, 1995 (60 FR 54151, October 20, 1995). Subpart C-Power Marketing
Initiative of the Program, Final Rule, 10 CFR part 905, provides for
project-specific resource pools and allocations of power from these
pools to eligible preference contractors. Western published its
decision to apply the Program Power Marketing Initiative (PMI) to the
P-DP on May 5, 2003 (68 FR 23709). This decision created a resource
pool of approximately 17 megawatts (MW) of summer season capacity and
13 MW of winter season capacity based on estimates of current P-DP
hydroelectric resource availability, for allocation to eligible
preference contractors for 20 years beginning October 1, 2008.
Traditionally, Western has marketed allocations of firm power to
eligible preference contractors to encourage the most widespread use,
following Federal Reclamation Law. Western will make allocations to
preference contractors under the current P-DP Marketing Plan (49 FR
50582, 52 FR 7014, 52 FR 28333) and the Program. Western intends to
carry forward the key principles and criteria of the Marketing Plan and
the Program, except as modified in this notice.
Proposed Post--2008 Resource Pool Allocation Procedures
These proposed procedures for the P-DP resource pool address (1)
eligibility criteria; (2) how Western plans to allocate the resource
pool to eligible applicants; and (3) the terms and conditions under
which Western will sell the allocated power.
I. Amount of Pool Resources
As of October 1, 2008, Western proposes to allocate, as long-term
firm power to eligible preference contractors, approximately 17 MW of
summer season capacity and 13 MW of winter season capacity, based on
estimates of current P-DP hydroelectric resource availability. Firm
power means capacity and associated energy allocated by Western and
subject to the terms and conditions specified in the Western P-DP
electric service contract. The associated energy will equal 3,441
kilowatt hours per kilowatt (kWh/kW) in summer and 1,703 kWh/kW in
winter, based on current marketing plan criteria. This new resource
pool includes 0.869 MW of summer withdrawable capacity and 0.619 MW of
winter withdrawable capacity. Withdrawable power is power reserved for
United States priority use, but not presently needed. Priority use
power is capacity and energy required for the development and operation
of Bureau of Reclamation (Reclamation) projects as required by
legislation and irrigation pumping on certain Indian lands. When
priority-use power is requested, Western will substantiate that the
power to be withdrawn will be used for the purposes specified in the
Conformed Criteria (49 FR 50586) and then, upon a 2-year written
advance notice, Western may withdraw the necessary amount of power on a
pro-rata basis (52 FR 28336).
II. General Eligibility Criteria
Western proposes to apply the following general eligibility
criteria to applicants seeking a firm power allocation under the
proposed Post-2008 Resource Pool Allocation Procedures:
A. Qualified applicants must be preference entities as defined by
section 9(c) of the Reclamation Project Act of 1939, 43 U.S.C. 485h(c),
as amended and supplemented.
B. First consideration will be given to qualified applicants in the
P-DP marketing area who do not have a contract with Western for Federal
power resources or are not a member of a parent entity that has a
contract with Western for Federal power resources.
C. Qualified 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 that the potential customer has
the facilities needed for the receipt of power or has made the
necessary arrangements for transmission and/or distribution service;
and the potential customer's power supply contracts with third parties
permit the delivery of Western's power (60 FR 54173). End users must
have the necessary arrangements for transmission and/or distribution
service in place by April 1, 2008.
D. Qualified applicants that desire to purchase power from Western
for resale to consumers, including cooperatives, municipalities, public
utility districts, and public power districts must have utility status
by October 1, 2005; and must have the necessary arrangements for
transmission and/or distribution service in place by April 1, 2008.
Native American tribes are not subject to this
[[Page 58902]]
requirement. Utility status means the applicant 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 for
resale to retail customers.
E. Qualified Native American applicants must be a Native American
tribe as defined in the Indian Self Determination Act of 1975, 25
U.S.C. 450b, as amended.
III. General Allocation Criteria
Western proposes to apply the following general allocation criteria
to applicants seeking an allocation of firm power under the proposed
Post-2008 Resource Pool Allocation Procedures.
A. Allocations of firm power will be made in amounts as determined
solely by Western in exercise of its discretion under Federal
Reclamation Law.
B. An allottee may begin service to purchase firm power only upon
the execution of an electric service contract between Western and the
allottee, and satisfaction of all conditions in that contract.
C. Firm power will be allocated under these procedures to qualified
applicants following preference provisions of section 9(c) of the
Reclamation Project Act of 1939, in the following order of priority:
1. Preference entities in the P-DP marketing area that do not have
a contract with Western for Federal power resources or are not a member
of a parent entity that has a contract with Western for Federal power
resources.
2. Preference entities in the P-DP marketing area that have a
contract with Western for Federal power resources or are a member of a
parent entity that has a contract with Western for Federal power
resources.
3. Preference entities in adjacent Federal marketing areas that do
not have a contract with Western for Federal power resources or are not
a member of a parent entity that has a contract with Western for
Federal power resources.
D. The P-DP marketing area includes:
All of the drainage area considered tributary to the
Colorado River below a point 1 mile downstream from the mouth of the
Paria River (Lee's Ferry).
The State of Arizona, excluding that portion lying in the
Upper Colorado River Basin, except for that portion of the Upper
Colorado River Basin in which the Navajo Generating Station is located.
The Navajo Generating Station is included in the power marketing area
as a resource only.
That portion of the State of New Mexico lying in the Lower
Colorado River Basin and the independent Quemada Basin lying north of
the San Francisco River drainage area.
Those portions of the State of California lying in the
Lower Colorado River Basin and in drainage basins of all streams
draining into the Pacific Ocean south of Calleguas Creek.
Those parts of the States of California and Nevada in the
Lahontan Basin including and lying south of the drainages of Mono Lake,
Adobe Meadows, Owens Lake, Amargosa River, Dry Lakes, and all closed
independent basins or other areas in southern Arizona not tributary to
the Colorado River.
For a map of the P-DP marketing area, visit Western's Web site at
http://www.wapa.gov/dsw/pwrmkt.
E. Western will base allocations made to qualified applicants on
the actual loads experienced in calendar year 2003 and will apply
current marketing plan criteria and Program criteria to these loads,
except as stated in this notice.
F. Western will base allocations made to Native American tribes on
the actual load experienced in calendar year 2003. Western has the
right to use estimated load values should actual load data not be
available. Western will review and adjust, where necessary, inaccurate
estimates received during the allocation process.
G. New contractors must execute electric service contracts within 6
months of receiving a contract offer from Western, unless Western
agrees otherwise in writing.
H. The resource pool will be dissolved subsequent to the closing
date for executing firm power contracts. Firm power not under contract
by the closing date will be used as determined by Western.
I. The minimum allocation shall be 1,000 kW.
J. If unanticipated obstacles to the delivery of hydropower
benefits to Native American tribes arise, Western retains the right to
provide the economic benefits of its resources directly to the tribes.
IV. General Contract Principles
Western proposes to apply the following general contract principles
to all applicants receiving an allocation of firm power under the
proposed Post-2008 Resource Pool Allocation Procedures.
A. Western reserves the right to reduce the withdrawable portion of
a contractor's contract rate of delivery, upon 2 years' notice of a
request by Reclamation for additional energy needed to serve project
pumping requirements.
B. Western, at its discretion and sole determination, reserves the
right to adjust the contract rate of delivery on 5 years' written
notice in response to changes in hydrology and river operations. Such
adjustments will only take place after Western conducts a public
process.
C. Each contractor is ultimately responsible for arranging third-
party delivery. Western may assist new contractors in obtaining third-
party transmission arrangements for delivery of firm power allocated
under these contracts.
D. No contractor shall sell for profit any of the capacity and
energy allocated to it to any customer of the contractor for resale by
that customer (49 FR 50585).
E. Contracts entered into under the Post-2008 Resource Pool
Allocation Procedures will provide for Western to furnish firm electric
service effective from October 1, 2008, through September 30, 2028.
F. Contractors will be required to pay in advance for their firm
electric service.
G. To the extent existing contractors' allocations are reduced to
create the resource pool, new contractors will be required to reimburse
existing contractors for undepreciated replacement advances.
H. Contracts entered into as a result of the proposed procedures
will incorporate Western's standard provisions for power sales
contracts, integrated resource planning, and the general power contract
provisions.
V. Applications for Firm Power
This notice formally requests applications from qualified entities
wishing to purchase power from the Desert Southwest Region. Western is
requesting Applicant Profile Data (APD) to provide a uniform basis for
evaluating applications. To be considered, qualified entities must
submit an application to the Desert Southwest Region as requested
below. To ensure full consideration for all applicants, Western will
not consider applications submitted before publication of this notice
or after the deadline specified in the DATES section. Application forms
are available upon request or may be accessed at http://www.wapa.gov/dsw/pwrmkt/FRN.
Western encourages applicants to use the application
form provided at the above Web site.
A. Applicant Profile Data Application
The content and format of the APD are outlined below. Applicants
should submit requested information in the sequence listed. Applicants
must provide all requested information, or the
[[Page 58903]]
most reasonable available estimate, or should indicate ``not
applicable'' if they have no information they wish to be considered for
a requested item. Western is not responsible for errors in data or
missing pages. All items of information in the APD should be answered
as if prepared by the entity seeking the allocation. The APD shall
consist of the following:
1. Applicant:
a. Applicant's (entity requesting a new allocation) name and
address.
b. Person(s) representing applicant: Please provide the name,
title, address, telephone and fax number, and e-mail address of such
person(s).
c. Type of organization: For example, Federal or state agency,
irrigation district, municipal, rural, or industrial user,
municipality, Native American tribe, public utility district, or rural
electric cooperative. Please provide a brief description of the
organization that will interact with Western on contract and billing
matters and whether the organization owns and operates its own electric
utility distribution system.
d. Parent organization of applicant, if any.
e. Name of members or suballottees, if any.
f. Applicable law under which the organization was established.
g. Taxpayer Identification Number (TIN).
h. Applicant's geographic service area: If available, submit a map
of the service area, and indicate the date prepared.
2. Loads:
a. All Applicants:
I. If applicable, number and type of customers served in calendar
year 2003; e.g., residential, commercial, industrial, military base,
agricultural.
II.The actual monthly maximum demand (in kilowatts) and energy use
(in kilowatt hours) experienced in calendar year 2003.
III. For Native American tribe applicants, if actual demand and
energy data is not available, provide estimated monthly demand (in
kilowatts) with a description of the method and basis for this
estimated demand.
3. Resources:
a. A list of current power supplies, including the applicant's own
generation and purchases from others. For each supply, provide capacity
and location.
b. Status of power supply contract(s), including a contract
termination date. Indicate whether power supply is on a firm basis or
some other type of arrangement.
4. Transmission:
a. Point(s) of delivery: Provide the preferred point(s) of delivery
on Western's P-DP system or a third party's system and the required
service voltage.
b. Transmission arrangements: Describe the applicant's transmission
arrangements necessary to deliver firm power to the requested points of
delivery beyond Western's P-DP system. Provide a single-line drawing of
applicant's system, if one is available.
5. Other Information: The applicant may provide any other
information pertinent to receiving an allocation.
6. Signature: The signature and title of an appropriate official
who is able to attest to the validity of the APD and who is authorized
to submit the request for allocation is required.
B. Western's Consideration of Applications
1. Upon receiving the APD, Western will verify that the applicant
meets the general eligibility criteria in Section II, and that the
application contains all items requested in the APD.
a. Western may request in writing additional information from any
applicant whose APD is determined to be deficient. The applicant will
have 15 days from the date on Western's letter of request to provide
the information.
b. If Western determines the applicant does not meet the general
eligibility criteria, Western will send a letter explaining why the
applicant did not qualify.
c. If the applicant has met the eligibility criteria, Western,
through the public process, will determine the amount of firm power, if
any, to allocate in accordance with the general allocation criteria in
Section III. Western will send a draft contract to the applicant that
identifies the terms and conditions of the offer and the amount of firm
power allocated to the applicant.
VI. Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.)
requires Federal agencies to perform a regulatory flexibility analysis
if a final rule is likely to have a significant economic impact on a
substantial number of small entities and there is a legal requirement
to issue a general notice of proposed rulemaking. Western has
determined that this action does not require a regulatory flexibility
analysis since it is a rulemaking of particular applicability involving
rates or services applicable to public property.
VII. Small Business Regulatory Enforcement Fairness Act
Western has determined that this rule is exempt from congressional
notification requirements under 5 U.S.C. 801 because the action is a
rulemaking of particular applicability relating to rates or services
and involves matters of procedure.
VIII. 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.
IX. Environmental Compliance
Western has completed an environmental impact statement on the
Program, pursuant to the National Environmental Policy Act of 1969
(NEPA). The Record of Decision was published in 60 FR 53181, October
12, 1995. Western's NEPA review assured all environmental effects
related to these actions have been analyzed.
Dated: September 16, 2004.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 04-22050 Filed 9-30-04; 8:45 am]
BILLING CODE 6450-01-P