Replacement Resources Methods Report, Grand Canyon Protection Act of 1992

DEPARTMENT OF ENERGY

Western Area Power Administration

Replacement Resources Methods Report, Grand Canyon Protection Act

of 1992

AGENCY: Western Area Power Administration (Western), DOE.

ACTION: Notice of availability, meetings, and comments.

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SUMMARY: Western has been engaged in a process to identify economically

and technically feasible methods for replacing power resources which

will be lost due to long-term, operational constraints at Glen Canyon

Dam. This process will conclude with a report of the findings to

Congress as required by the Grand Canyon Protection Act (GCP Act) of

1992, Title XVIII of Pub. L. 102-575. Section 1809 of the GCP Act

requires the Secretary of Energy to consult with representatives of the

Colorado River Storage Project (CRSP) power customers, environmental

organizations, and the Colorado River Basin States and with the

Secretary of the Interior in this process. The Secretary of Energy,

acting through Western, has the responsibility of marketing power

generated from Glen Canyon Dam and other CRSP power facilities,

including power acquired by Western to replace the power lost due to

operational changes at Glen Canyon Dam.

Western published a notice initiating the formal, public

consultation process in the Federal Register on August 8, 1994 (59 FR

40357). An October 7, 1994, Federal Register notice (59 FR 51191) by

Western announced four regional public consultation meetings. A 20-

page, Replacement Resources Information Packet was prepared that

included Western's proposed process to complete the method

identification requirement of the GCP Act. On October 20, 1994, this

information packet, along with the text of the October Federal Register

notice, was mailed to approximately 900 entities and individuals on

Western's Replacement Resources Process mailing list. In November 1994,

four regional public involvement meetings were held in Salt Lake City,

Utah; Denver, Colorado; Phoenix, Arizona; and Albuquerque, New Mexico.

Public comments were received on the proposed process through December

19, 1994, the comment deadline. Newsletters that provided updates on

the status of replacement resources activities were prepared by Western

in February and October 1995. These newsletters were distributed to

Western's mailing list. On April 30, 1996, at Western's CRSP Customer

Service Center's Annual Customer Meeting in Salt Lake City, Western

provided an update on replacement resources activities to CRSP power

customers and to Bureau of Reclamation (Reclamation) representatives.

This update included a discussion by Western of earlier public comment.

DATES: Western now announces the availability of the Draft Replacement

Resources Methods Report (Draft Methods Report). Western is also

seeking comments on the Draft Replacement Resources Methods Report. To

be considered, comments need to be received by September 3,1996. In

addition, Western will hold four public meetings to provide information

and to accept public comment on the proposed methods included in this

report. Public consultation meetings will be held:

July 23, 1996: Albuquerque, New Mexico, Courtyard Marriott Hotel, 1920

Yale Boulevard, SE., 9 a.m. to noon

July 24, 1996: Phoenix, Arizona, Embassy Suites Hotel, 3210 NW., Grand

Avenue, at 9 a.m. to noon

July 25, 1996: Denver, Colorado, Denver West Marriott, 1717 Denver West

Boulevard, 9 a.m. to noon

July 29, 1996: Salt Lake City, Utah, Doubletree Hotel, 215 South

Temple, 8:30 a.m. to 11:30 a.m.

Background

The Replacement Resources Methods Report identifies economic and

technically feasible methods to replace capacity made unavailable (``or

lost'') due to operational constraints. The report also includes a

``proof-of-concept'' analysis of five hypothetical resource options

with varying degrees of complexity. The methods considered are

consistent with other Western resource acquisition policies, such as

Western's Principles of Integrated Resource Planning (IRP) and its

Purchase Power Policy. The methods would also be consistent with the

pending Salt Lake City Area/ Integrated Projects (SLCA/IP) Contract

Amendment, the Records of Decision in Western's SLCA/IP Electric Power

Marketing Environmental Impact Statement (EIS) and Energy Planning and

Management Program, Reclamation's Glen Canyon Dam EIS, pertinent

Federal Energy Regulatory Commission orders, and laws affecting DOE,

Western, and CRSP.

In the Draft Methods Report, Western evaluates methods to replace

capacity made unavailable (``or lost'') due to operational constraints

using spot market, seasonal (6 months), and mid- to long-term (1 year

or more, up to the end of the contract term) resource acquisitions.

Western would consult with firm power customers periodically about the

amount and term of resource acquisitions to be made on their behalf,

which Western could then acquire and deliver to them. Greater public

involvement and more complex evaluation procedures and acquisition

methods would be used for long-term acquisitions rather than for

seasonal acquisitions, consistent with Western's Purchase Power Policy.

Western proposes to use a screening tool and a production cost

computer model to evaluate future resource offers from potential

suppliers. The Draft Methods Report details how these evaluation tools

are applied to evaluate five hypothetical resource purchases. These

resource alternatives were designed to illustrate the screening and

evaluation tool's abilities to evaluate and select from among many

diverse replacement resource options and to consider transmission

system constraints and possible solutions. The Draft Methods Report

concludes that the screening criteria and evaluation tools developed

will enable Western to identify economically and technically feasible

replacement power resources in the future.

Further Information

To provide written comments on the Draft Replacement Resources

Methods Report, contact: Mr. Jeffrey McCoy, Resource Analysis Team

Lead, CRSP Customer Service Center, Western Area

[[Page 34434]]

Power Administration, PO Box 11606, Salt Lake City, UT 84147-0606.

Environmental Compliance

Western will comply with the National Environmental Policy Act of

1969 through an appropriate level of environmental analysis of the

impacts of specific replacement resources when such specific resources

are being considered for acquisition.

Determination Under Executive Order 12866

DOE has determined 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 the Office of Management and Budget is required.

Issued at Washington, DC, June 24, 1996.

Joel K. Bladow,

Assistant Administrator.

[FR Doc. 96-16847 Filed 7-1-96; 8:45 am]

BILLING CODE 6450-01-P