# Replacement Resources Methods Report, Grand Canyon Protection Act of 1992

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URL: https://www.frixlaw.com/law-library/documents/fr%3A96-16847

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** July 2, 1996
- **Citation:** 61 FR 34433

## Text

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A96-16847. Public record. Not legal advice.
