Proposed Power Allocation Procedures and Call for Applications, Post-2000 Resource PoolPick-Sloan Missouri Basin Program, Eastern Division

DEPARTMENT OF ENERGY

Western Area Power Administration

Proposed Power Allocation Procedures and Call for Applications,

Post-2000 Resource Pool--Pick-Sloan Missouri Basin Program, Eastern

Division

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Allocation Procedures and Call for

Applications.

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SUMMARY: Western Area Power Administration (Western), a Federal power

marketing agency of the Department of Energy, is publishing this notice

of proposed procedures to implement Subpart C--Power Marketing

Initiative of the Energy Planning and Management Program Final Rule, 10

CFR part 905, published at 60 FR 54151. The Energy Planning and

Management Program (Program), which was developed in part to implement

section 114 of the Energy Policy Act of 1992, became effective on

November 20, 1995. Subpart C of the Program provides for the

establishment of project-specific resource pools and the allocation of

power from these pools to new preference customers. These proposed

procedures, in conjunction with the Eastern Division, Pick-Sloan

Missouri Basin Program Final Post-1985 Marketing Plan (Post-1985

Marketing Plan) (45 FR 71860) will establish the framework for

allocating power from the resource pool to be established for the Pick-

Sloan Missouri Basin Program--Eastern Division (PSMBP-ED).

DATES: The comment period on the proposed procedures will begin with

the publication of this notice in the Federal Register and will end

March 4, 1996. To be assured of consideration, all written comments

must be received by the end of the comment period. Western will hold

public information forums and public comment forums on the proposed

procedures on February 14,

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15, and 16, 1996 at the following locations and times:

February 14, 1996, Hilton Sioux Hotel, 707 Fourth St., Sioux City,

Iowa, Information forum--1 p.m. (not to exceed 2 hours), Comment

forum--immediately following the information forum

February 15, 1996, Best Western Doublewood Inn, 3333 13th Avenue South,

Fargo, North Dakota, Information forum--1 p.m. (not to exceed 2 hours),

Comment forum--immediately following the information forum

February 16, 1996, Holiday Inn, 1902 LaCross Street, Rapid City, South

Dakota, Information forum--9 a.m. (not to exceed 2 hours), Comment

forum--immediately following the information forum

ADDRESSES: All written comments regarding these proposed procedures

should be directed to the following address: Mr. Joel K. Bladow, Acting

Regional Manager, Upper Great Plains Customer Service Region, Western

Area Power Administration, P.O. Box 35800, Billings, MT 59107-5800.

All documentation developed or retained by Western for the purpose

of developing these procedures will be available for inspection and

copying at the Upper Great Plains Customer Service Region located at

the above address.

FOR FURTHER INFORMATION CONTACT: Robert J. Harris, Assistant Area

Manager for Engineering and Marketing, Upper Great Plains Customer

Service Region, Western Area Power Administration, P.O. Box 35800,

Billings, MT 59107-5800, (406) 247-7394.

After all public comments have been thoroughly considered, Western

will prepare and publish the Final Post 2000 Resource Pool Allocation

Procedures in the Federal Register.

SUPPLEMENTARY INFORMATION: On October 20, 1995, Western published the

Final Rule for the Program. The rule became effective on November 20,

1995. The goal of the Program is to require planning and efficient

electric energy use by Western's long-term firm power customers and to

extend Western's firm power resource commitments. One aspect of the

Program is the establishment of project-specific power resource pools

when existing resource commitments expire and the allocation of power

from these pools to new preference customers.

Existing resource commitments for the PSMBP-ED expire on December

31, 2000. In accordance with the Program, 96 percent (96%) of the firm

power resources determined to be available at that time will be

extended to existing customers. The remaining 4 percent (4%) will be

placed in a resource pool from which power allocations to new customers

will be made in accordance with these procedures and the Post-1985

Marketing Plan.

The Proposed Post-2000 Resource Pool Allocation Procedures

These proposed procedures for the PSMBP-ED address (1) eligibility

criteria; (2) how Western plans to allocate the pool resources to new

customers as provided for in the Program; and (3) the terms and

conditions under which Western will sell the power allocated.

I. Amount of Pool Resources

Western proposes to allocate 4 percent (4%) of the PSMBP-ED long-

term firm hydroelectric resource available as of January 1, 2001 as

firm power (firm power) as provided for by the Program. Firm power

means capacity and associated energy allocated by Western and subject

to the terms and conditions specified in the Western electric service

contract.

II. General Eligibility Criteria

Western proposes to apply the following general eligibility

criteria to applicants seeking an allocation of firm power under the

proposed Post-2000 Resource Pool Allocation Procedures.

A. Qualified utility applicants and qualified Native American

applicants must be preference entities in accordance with section 9(c)

of the Reclamation Project Act of 1939, 43 U.S.C. 485h(c), as amended

and supplemented.

B. Qualified utility applicants and qualified Native American

applicants must be located within the currently established PSMBP-ED

marketing area.

C. Qualified utility applicants must not be currently receiving

benefits, directly or indirectly, from a current PSMBP-ED firm power

allocation. Qualified Native American applicants are not subject to

this requirement.

D. Qualified utility applicants must be able to use the firm power

directly or be able to sell it directly to retail customers.

E. Qualified utility applicants must have utility status by

December 31, 1996. 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.

F. 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 2000 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 Reclamation Law.

B. An allottee will have the right to purchase such 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 allocated under these procedures will be available

only to new preference customers in the existing PSMBP--ED marketing

area. This marketing area includes Montana (east of the Continental

Divide), North Dakota, South Dakota, and specific areas in western

Iowa, western Minnesota and eastern Nebraska. The marketing area of the

PSMBP--ED is Montana east of the Continental Divide, all of North and

South Dakota, Nebraska east of the 101 deg. meridian, Iowa west of the

94\1/2\ deg. meridian, and Minnesota west of a line on the 94\1/2\ deg.

meridian from the southern boundary of the state to the 46 deg.

parallel and thence northwesterly to the northern boundary of the state

at the 96\1/2\ deg. meridian.

D. Allocations made to Native American tribes will be based on

estimated load developed by the Native American Tribes. Inconsistent

estimates will be adjusted by Western during the allocation process.

Western is willing to consult with the Tribes to develop load

estimating methods assuring consistent Native American load estimates

across the region.

E. Allocations made to utility customers will be based on the loads

experienced in the 1994 summer season and the 1994-95 winter season.

Western will use Mid-Continent Area Power Pool data trends to adjust

this data in order to apply Post-1985 Marketing Plan criteria.

F. Energy provided with firm power will be based upon the

customer's monthly system load factor.

G. Any electric service contract offered to a new customer shall be

executed by the customer within six (6) months of a contract offer by

Western, unless otherwise agreed to in writing by Western.

H. The initial resource pool will be dissolved subsequent to the

closing date for executing firm power contracts. Firm

[[Page 2819]]

power not under contract will be used as determined by Western.

I. The minimum allocation shall be 100 kilowatts (kW).

J. The maximum allocation for utility customers shall be 5,000

kilowatts (kW).

K. Contract rates of delivery shall be subject to adjustment in the

future as provided for in the Program.

L. 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 2000 Resource Pool Allocation Procedures.

A. Western shall reserve the right to reduce a customer's summer

season contract rate of delivery by up to 5 percent (5.0%) for new

project pumping requirements, by giving a minimum of five (5) years'

written notice in advance of such action.

B. Western, at its discretion and sole determination, shall reserve

the right to adjust the contract rate of delivery on five (5) years'

notice in response to changes in hydrology and river operations. Any

such adjustments shall only take place after public process.

C. Western shall assist the allottee in obtaining third-party

transmission arrangements for delivery of firm power allocated under

these proposed procedures to new customers; nonetheless, each allottee

is ultimately responsible for obtaining its own delivery arrangements.

D. Contracts entered into under the proposed Post 2000 Resource

Pool Allocation Procedures shall provide for Western to furnish firm

electric service effective from January 1, 2001, through December 31,

2020.

E. The contracts entered into as a result of the proposed

procedures shall incorporate Western's standard provisions for power

sales contracts, integrated resource planning, and the general power

contract provisions.

V. Applications for Firm Power

Western requests all applications be submitted in writing to the

Regional Manager, Upper Great Plains Customer Service Region, for an

allocation of firm power under these procedures. Applications must be

made only via certified, return receipt requested U.S. mail. No other

means of submitting applications will be accepted. The applications

must be received in Western's Upper Great Plains Customer Service

Region at P.O. Box 35800, Billings, Montana 59107-5800, no later than

the close of business on March 4, 1996.

A. Letter of Interest and Applicant Profile Data (APD)

Each applicant must submit to the Regional Manager, Upper Great

Plains Customer Service Region, a Letter of Interest in receiving firm

power and the appropriate APD as outlined below.

B. Applicant Profile Data

The content and format of the APD are outlined below. The

information should be submitted in the sequence listed. The applicant

must provide all requested information or the most reasonable available

estimate. The applicant should note any requested information that is

not applicable. The APD must be typed and two copies submitted by

certified or return receipt requested mail to Western's Upper Great

Plains Customer Service Region by the date specified above. The burden

of ensuring consistency of the content of both copies rests with the

applicant. 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 organization seeking the allocation.

1. The APD shall consist of the following:

a. Applicant:

i. Applicant's name and address.

ii. Person(s) representing applicant: Please provide the name,

address, title, and telephone number of such person(s).

iii. Type of organization: For example, municipality, rural

electric cooperative, Native American tribe, state agency, Federal

agency. 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 system.

iv. Applicable law under which organization was established.

b. Loads:

i. Utility Customers:

(1) Number and type of customers served; i.e., residential,

commercial, industry, military base, agricultural.

(2) The actual monthly maximum demand in (kilowatts) and energy use

(in kilowatt-hours) experienced in the 1994 summer season (May 1994

through October 1994) and the 1994-95 winter season (November 1994

through April 1995).

ii. Native American Tribes:

(1) Estimated maximum demand in kilowatts with a description of the

method and basis for this estimated demand.

c. Resources:

i. A list of current power supplies, including the applicant's own

generation and purchases from others. For each supply, provide capacity

and location.

ii. Status of power supply contracts, including a contract

termination date. Indicate whether power supply is on a firm basis or

some other type of arrangement.

d. Transmission:

i. Points of delivery: Provide the preferred point(s) of delivery

on Western's system or a third-party's system and the required service

voltage.

ii. Transmission arrangements: Describe the transmission

arrangements necessary to deliver firm power to the requested points of

delivery.

e. Other Information:

The applicant may provide any other information pertinent to

receiving an allocation.

f. 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.

C. Western's Consideration of Applications

1. When the APD is received by Western, Western will verify that

the general eligibility criteria set forth in section II has been met,

and that all items requested in the APD have been provided.

a. Western will request in writing additional information from any

applicant whose APD is determined to be deficient. The applicant shall

have 15 days from the date on Western's letter of request to provide

the information.

b. If Western determines that 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 will

determine the amount of firm power to be allocated pursuant to the

general allocation criteria set forth in section III. Western will send

a draft contract to the applicant for review which identifies the terms

and conditions of the offer and the amount of firm power allocated to

the applicant.

2. All firm power shall be allocated according to the procedures in

the general allocation criteria set forth in section III.

3. Western reserves the right to determine the amount of firm power

to allocate to an applicant, as justified by the applicant in its APD.

[[Page 2820]]

VI. Review Under the Regulatory Flexibility Act

The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires

Federal agencies to perform a regulatory flexibility analysis if a

proposed regulation is likely to have a significant economic impact on

a substantial number of small entities. Western has determined that (1)

this rulemaking relates to services offered by Western, and, therefore,

is not a rule within the purview of the Act, and (2) the impacts of an

allocation from Western would not cause an adverse economic impact on a

substantial number of such entities. The requirements of this Act can

be waived if the head of the agency certifies that the rule will not,

if promulgated, have a significant economic impact on a substantial

number of small entities. By his execution of this Federal Register

notice, Western's Administrator certifies that no significant economic

impact on a substantial number of small entities will occur.

VII. Review Under the Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1980, 44 U.S.C.

3501-3520, Western has received approval from the Office of Management

and Budget (OMB) for the collection of customer information in this

rule, under control number 1910-1200.

VIII. Review Under the National Environmental Policy Act

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 the Federal Register on

October 12, 1995 (60 FR 53181). Western's NEPA review will assure all

environmental effects related to these procedures have been analyzed.

IX. Determination Under Executive Order 12866

DOE has determined that this is not a significant regulatory action

because it does not meet the criteria of Executive Order 12866, 58 FR

51735. Western has an exemption from centralized regulatory review

under Executive Order 12866; accordingly, no clearance of this notice

by OMB is required.

Issued in Golden, Colorado, January 19, 1996.

J.M. Shafer,

Administrator.

[FR Doc. 96-1394 Filed 1-26-96; 8:45 am]

BILLING CODE 6450-01-P