Proposal To Extend Electric Power Resource Commitments to Contractors of the Salt Lake City Area Integrated Projects by Application of the Energy Planning and Management Program Power Marketing Initiative

DEPARTMENT OF ENERGY

Western Area Power Administration

Proposal To Extend Electric Power Resource Commitments to

Contractors of the Salt Lake City Area Integrated Projects by

Application of the Energy Planning and Management Program Power

Marketing Initiative

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposal.

-----------------------------------------------------------------------

SUMMARY: In 1995, the Department of Energy, Western Area Power

Administration (Western) completed an environmental impact statement

(EIS), DOE/EIS-0182, on its Energy Planning and Management Program

(Program). Western published a Final Rule adopting the Program on

October 20, 1995 (10 CFR Part 905). The Program has two major

components: a requirement that all long-term, firm electrical power

contractors prepare integrated resource plans (IRP) or small customer

plans; and a Power Marketing Initiative (PMI) in which these

contractors will receive an extension of a major portion of the

resources available at the time the contracts expire. The Record of

Decision (ROD) stated that Western would implement the requirements for

customers to prepare IRPs and small customer plans immediately, but

that application of the PMI would be done on a project-specific basis.

Western now proposes to apply the PMI to the long-term, firm power

contracts of the Salt Lake City Area Integrated Projects (SLCA/IP).

DATES: Western will accept written comments on or before May 27, 1997.

The times and locations of four information/comment meetings will be

announced in a subsequent notice in the Federal Register.

ADDRESSES: Comments may be submitted to: Mr. David Sabo, Western Area

Power Administration, Colorado River Storage Project Manager, P.O. Box

11606, Salt Lake City, UT 84147-0606.

SUPPLEMENTARY INFORMATION: Western first proposed the Program on April

19, 1991 (56 FR 16093). The goals of the Program were to encourage

efficient energy use by Western's long-term, firm power customers by

requiring integrated resource planning and to extend Western's firm

power resource commitments as contracts expire. Western published its

notice of intent to prepare an EIS on the Program in the Federal

Register on May 1, 1991 (56 FR 19995).

President Bush signed the Energy Policy Act (EPAct) into law on

October 24, 1992. Section 114 of EPAct amended Title II of the Hoover

Power Plant Act of 1984 to require the preparation of IRPs by Western's

customers. Western adjusted its proposed Program to fully incorporate

the provisions of this law.

A notice of proposed rulemaking for the Program was published in

the Federal Register on August 9, 1994 (59 FR 40543), with seven public

information/comment forums held at various locations during September

1994. In the August 9 Notice, Western estimated that initially 98

percent of SLCA/IP resources available at the end of the term of

existing contracts would be extended.

[[Page 8710]]

In the Final rule, Western stated that application of the PMI

including length of resource extension and the amount of resources

extended would be determined through a project specific process later.

Under the PMI, existing firm power sales commitments were to be

extended for 20 years beyond the existing termination date. A

commitment of not less than 96 percent of the hydroelectric power

resource determined to be available to the customers was to be

extended, and a power resource pool of up to 4 percent of the power

from these customers would be created.

The resource pool would be used for allocations to new customers

and contingencies. The rule stated that a more precise decision on how

resource pools would be used would be made by Western later. Western's

rule further stated that the percentage of existing commitments

extended for the other projects would be determined later. It also

stated that the application of the PMI for the ``Salt Lake City Area

Integrated Projects Marketing Plan would be determined following

completion of the separate National Environmental Policy Act of 1969

(NEPA) process currently under way.'' That NEPA process is the SLCA/IP

Electric Power Marketing EIS. The final EIS was published in January

1996, and the ROD was published in October 1996.

Western proposes to apply the PMI, (10 C.F.R. 905.31 through

905.37), to the SLCA/IP. This includes, among other things, a proposal

to extend 96 percent of the SLCA/IP contractors' entitlement of long-

term, firm Federal resources as of September 30, 2004, for an

additional 20 years. Western proposes that an initial resource pool of

up to 4 percent of available Federal resources be created for new

customers to encourage customer development of new technologies for

conservation or renewable resources and for contingencies. Western's

analysis shows that a resource pool of 4 percent of available resources

should be adequate to provide potential new customers with a fair share

entitlement of Federal resources. Fair share amounts of capacity and

energy will be offered to new customers meeting the requirements

established in the Post-89 Marketing Criteria and to qualifying Indian

tribes within the SLCA/IP marketing area. Indian tribes need not have

utility status to qualify for an allocation. In addition to the

adjustment in long-term firm resources in 2004, resource commitments

may be reduced on October 1, 2009, and October 1, 2014, upon 2 years

written notification. These resource adjustments would provide an

additional amount of power for the same purposes as the 2004

adjustment.

Adjustments may also be made in resource allocations at any time to

reflect changes in dam operations and/or water conditions upon 5 years

notification.

Western is seeking comments on the appropriateness of the length of

extension offered and on what percentage of the SLCA/IP resource should

be extended to the SLCA/IP long-term, firm power customers. In addition

Western requests comments on the uses that should be made of the

electrical power resource pool that will be created. Following the

public comment period, Western will analyze the comments received and

publish its policy regarding extension of resource commitments in the

Federal Register.

NEPA COMPLIANCE: Western will comply with NEPA through preparation of

appropriate NEPA documentation of the impacts of the proposal.

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 the Office of

Management and Budget (OMB) is required.

Issued in Washington, DC on February 19, 1997.

Joel K. Bladow,

Assistant Administrator.

[FR Doc. 97-4693 Filed 2-25-97; 8:45 am]

BILLING CODE 6450-01-P