Proposed 2004 Power Marketing Plan

DEPARTMENT OF ENERGY

Proposed 2004 Power Marketing Plan

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed plan.

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SUMMARY: The Western Area Power Administration's (Western) Sierra

Nevada Customer Service Region (Sierra Nevada Region) has developed a

Proposed 2004 Power Marketing Plan (Proposed Plan). The Proposed Plan

provides for marketing power from Central Valley Project (CVP) and

Washoe Project powerplants after the year 2004. Western currently

markets about 1,580 megawatts (MW) of CVP power under long-term

contracts to 80 preference customers in northern and central

California. Western also markets 3.65 MW of Washoe Project power. On

December 31, 2004, all of Western's long-term CVP power sales contracts

will expire, along with Contract 14-06-200-2948A (Contract 2948A) with

the Pacific Gas and Electric Company (PG&E) for the sale, interchange

and transmission of electric capacity and energy. Western has developed

the Proposed Plan to define the products and services to be offered,

and the eligibility and allocation criteria that will lead to

allocations of CVP and Washoe Project power beyond the year 2004. This

Federal Register notice initiates the Administrative Procedure Act

process that gives the public an opportunity to participate in

administrative rulemaking for marketing of this power by Western after

the year 2004, and requests public comment.

DATES: On April 8, 1997, beginning at 10 a.m., Western will hold a

public information forum on the Proposed Plan. At the information

forum, Western representatives will present the Proposed Plan and

respond to questions from the public. On April 24, 1997, beginning at 1

p.m., Western will hold a public comment forum to receive oral and

written comments on the Proposed Plan. Each forum will be held at the

Sierra Nevada Regional Office, 114 Parkshore Drive, Folsom, California.

Oral or written comments may be presented at the public comment forum.

A transcript of oral comments made at this forum will be available from

the court reporter. Written comments on the Proposed Plan will be

accepted from the date of publication of this Federal Register notice

through May 27, 1997.

ADDRESSES: Written comments may be hand-delivered, mailed, or faxed to

the address provided below. Comments must be received by 5 p.m. PDT or

postmarked on May 27, 1997 to assure consideration. Inquiries and

written comments regarding the Proposed Plan should be directed to:

James C. Feider, Regional Manager, Western Area Power Administration,

Sierra Nevada Region, 114 Parkshore Drive, Folsom, CA 95630-4710, (916)

353-4418, (916) 985-1931 FAX.

All documentation developed or retained by Western for the purpose

of developing the Proposed Plan will be available for inspection and

copying at the address below.

FOR FURTHER INFORMATION CONTACT: Zola M. Jackson, Power Marketing

Manager, Western Area Power Administration, Sierra Nevada Region, 114

Parkshore Drive, Folsom, CA 95630-4710, (916) 353-4421.

After all public comments have been considered, Western will

publish a Final 2004 Power Marketing Plan (Final Plan) in the Federal

Register.

[[Page 8711]]

SUPPLEMENTARY INFORMATION:

Authorities

The Sierra Nevada Region developed this Proposed Plan in accordance

with its power marketing authorities in the Federal Reclamation laws,

the Act of June 17, 1902 (32 Stat. 388), the Act of August 4, 1939 (53

Stat. 1187); the Act of April 8, 1935 (49 Stat. 115), the Act of June

22, 1936 (49 Stat. 1622), the Act of August 26, 1937 (50 Stat. 844),

the Act of October 17, 1940 (54 Stat. 1198), the Act of December 22,

1944 (58 Stat. 887), Act of October 14, 1949 (63 Stat. 852), the Act of

September 26, 1950 (64 Stat. 1036), the Act of August 12, 1955 (69

Stat. 719), the Act of August 1, 1956 (70 Stat. 775), the Act of June

3, 1960 (74 Stat. 156), the Act of October 23, 1962 (76 Stat. 1173),

the Act of September 2, 1965 (79 Stat. 615), the Act of August 4, 1977

(91 Stat. 565), and the Act of July 16, 1984, including all acts

amendatory and/or supplementary to the above listed.

Development of the Proposed Plan

Western is developing the Proposed Plan to define: (1) the products

and services to be offered, and (2) the criteria for allocating power

resources to be marketed under contracts that will replace those

expiring on December 31, 2004.

Development of the Proposed Plan was initiated with a series of

three informal public information meetings held on November 17, 1995,

March 7, 1996, and May 13, 1996. These meetings began informal

discussions to identify pertinent issues and possible marketing

options, including products and services and eligibility and allocation

criteria, to be included in the Proposed Plan. During the informal

process, Western evaluated several options for marketing power after

termination of existing contracts. Western's proposal provides each

customer a right to customize its power allocation from Western. This

will provide a customer the flexibility to optimize the use of Western

power.

Western is also proposing to offer a resource extension to existing

customers and to offer a portion of the resource to new customers.

Western believes its Proposed Plan provides a balance between existing

and new customers, while meeting its contractual obligations that

continue beyond 2004.

As explained in the DATES section of this notice, Western will hold

public information and comment forums on the Proposed Plan. After

consideration of all public comments, Western will publish notice of

the Final Plan in the Federal Register. With that notice, Western will

also announce its decisions regarding power resource extensions to

existing customers and call for applications for new allocations. The

deadline for receipt of applications will be set forth in the call for

applications. Western will then consider the applications, determine

which applications meet the requirements of the Final Plan, and

exercise its discretion provided by law in allocating the power to

eligible applicants. Proposed and final allocations will subsequently

be published in the Federal Register.

To implement the Proposed Plan, the level of power resources to be

marketed must be determined. Determining levels of power resources to

be marketed and subsequently entering into contracts for the delivery

of related products and services could be a major Federal action with

potentially significant impacts on the human environment. Therefore, an

Environmental Impact Statement (EIS) process was initiated on the 2004

Power Marketing Program with a Federal Register notice published at 58

FR 42536 and 43105, on August 10 and 13, 1993, respectively, in

compliance with the National Environmental Policy Act of 1969 (NEPA)

(42 U.S.C. 4321, et seq.), as amended, and associated implementing

regulations. Following several public meetings, a draft EIS was

prepared. The draft EIS described the environmental consequences of a

range of reasonable marketing plan alternatives and identified no

significant impacts. A Federal Register notice was published on May 24,

1996 (61 FR 26174) announcing that the draft EIS was available for

public review and comment. Also, Western held a public hearing on June

13, 1996 to receive formal comments on the draft EIS, with a July 31,

1996 deadline for receipt of written comments. A final EIS is expected

to be completed by March 1997, and a Record of Decision is tentatively

scheduled to be published in April 1997. The Final Plan will

incorporate decisions made as a result of the findings of the final

EIS.

The schedule for the Proposed Plan was developed to recognize

Western's responsibility to its customers to provide: (1) necessary

planning time (approximately 5 years after final contract commitments)

for customers to acquire new power resources should their allocation of

CVP power change; (2) sufficient time for Western's Sierra Nevada

Region or its customers to negotiate contracts for control area

services, third-party transmission, and supplemental power supplies;

and (3) time to meet with each customer to design a product/service

package prior to the customer making a final commitment.

The Proposed Plan also incorporates the intent of the Final Rule

for the Energy Planning and Management Program (EPAMP) (10 CFR part

905), published by Western on October 20, 1995 at 60 FR 54151. The

EPAMP Final Rule became effective on November 20, 1995. EPAMP

implements Section 114 of the Energy Policy Act of 1992, and requires

Western's customers to prepare Integrated Resource Plans (IRP). The

Power Marketing Initiative (PMI) of EPAMP provides a framework for

extending a major portion of the power available at the time current

contracts expire to existing customers, and for establishing project-

specific resource pools. During the public process for EPAMP, it was

determined that application of the PMI to the CVP would be evaluated

during the 2004 Power Marketing Plan public process.

Background

The CVP is a large water and power system, initially authorized by

Congress in 1935, which covers approximately one-third of the State of

California. Legislatively defined purposes set the priorities for the

CVP as: (1) river regulation; (2) improvement of navigation; (3) flood

control; (4) irrigation; (5) domestic uses; and (6) power. In addition,

the CVP Improvement Act of 1992 added fish and wildlife habitat as a

priority to the list of CVP purposes.

The CVP power facilities include 11 powerplants with a maximum

operating capability of about 2,044 MW, and an estimated average annual

generation of 4.6 million megawatthours (MWh). The U.S. Department of

the Interior, Bureau of Reclamation (Reclamation) operates the water

control and delivery system and all of the powerplants with the

exception of the San Luis Unit, which is operated by the State of

California for Reclamation. Western markets and transmits the power

available from the CVP.

Western owns the 94 circuit-mile Malin-Round Mountain 500-kilovolt

(kV) transmission line (an integral section of the Pacific Northwest-

Pacific Southwest Intertie (Pacific Intertie)), 803 circuit miles of

230-kV transmission line, 7 circuit miles of 115-kV transmission line

and 44 miles of 69-kV and below transmission line. Western also has

part ownership in the 342-mile California-Oregon Transmission Project

(COTP). Some of Western's existing customers have no direct access to

Western's transmission lines and receive service over transmission

lines owned by other utilities.

[[Page 8712]]

Western has historically combined output from CVP hydroelectric

facilities with supplemental power from a number of other power

resources. This has enabled Western to enhance the CVP power resources

and to market an amount of firm power to its customers that would not

be available solely from CVP facilities in all years. A portion of this

supplemental power has been transmitted over the COTP and Pacific

Intertie.

The Washoe Project was authorized by Congress in 1956 and is a

separate project from the CVP. The Washoe Project, located in west-

central Nevada and east-central California, was designed to regulate

runoff from the Truckee and Carson rivers and to enhance irrigation;

water drainage; municipal, industrial, and fisheries uses; and provide

flood protection; fish and wildlife habitat; and recreation. The Washoe

Project includes Prosser Creek Dam and reservoir; Stampede Dam,

reservoir, and powerplant; Marble Creek Dam; and Pyramid Lake Fishway.

The Stampede Powerplant, located in Sierra County, California, was

completed in 1987, and has a maximum operating capability of 3.65 MW

with an estimated annual generation of 10,000 MWh. Sierra Pacific Power

Company (SPPC) owns and operates the only transmission system available

for distribution of power generated at the Stampede Powerplant.

History of Central Valley Project Power Allocations

Power was first generated in the CVP at the Shasta Powerplant in

1944. Formal allocations of 450 MW of CVP power were first made in

1952. In 1964, with the addition of the Trinity River Division

facilities, allocations to preference customers were increased to 925

MW. In 1967, under terms of Contract 2948A, power imports over the

Pacific Intertie (Northwest imports) were incorporated along with

provisions for load level increases up to 985 MW in 1975 and up to

1,050 MW in 1980.

Later in 1980, the load level was increased by 102 MW to 1,152 MW.

This increase in allocations was accomplished under the 1981 Power

Marketing Plan (47 FR 4139) dated January 28, 1982. New customers

received 26 MW of nonwithdrawable power and 42 MW of withdrawable power

for a total of 68 MW, with 4 MW of withdrawable power left unallocated.

Also, diversity power allocations of 30 MW were made to those customers

who could shed load during Sierra Nevada Region's system simultaneous

peak.

During the same time period, SMUD challenged Western's right to

meld the costs of Northwest imports into CVP power rates charged to

SMUD. In a 1983 settlement, it was agreed that SMUD would pay the

melded CVP power rates; SMUD's electric service contract, due to expire

in 1994, would be extended to 2004; and SMUD would have the right to

purchase 100 MW of peaking capacity through 2004. Further, SMUD would

have the right to purchase a portion of the power to be marketed from

2005 to 2014.

Under the 1994 Power Marketing Plan (57 FR 45782 and 58 FR 34579)

dated October 5, 1992 and June 28, 1993, respectively, existing

customers with contracts expiring in 1994 were allocated 501 MW, and

approximately 8 MW was allocated to new customers.

In addition to the power marketed in the 1994 Power Marketing Plan,

total power under existing contracts includes approximately 910 MW of

long-term firm power, 100 MW of peaking capacity, and 60 MW of

withdrawable power, for a total of about 1,580 MW. See Appendix A of

this notice for Existing Customers' CRD Amounts.

On November 30, 1993, the National Defense Authorization Act (NDA

Act) was signed into law. This act provides that, for a 10-year period,

the CVP electric power allocations to military installations in the

State of California which have been closed or approved for closure

shall be reserved for sale through long-term contracts to preference

entities which agree to use such power to promote economic development

at the military installations closed or approved for closure. On

December 1, 1994, Western published the final NDA Act procedures

developed to fulfill the requirements of section 2929 of the NDA Act

(59 FR 61604). To date, about 42 MW of long-term firm power and about 9

MW of withdrawable power under contract to military installations being

closed has been converted to NDA Act power.

History of Washoe Project (Stampede Powerplant) Allocations

Pursuant to Final Allocation of Stampede Powerplant Power (50 FR

43456) dated October 25, 1985, Western allocated all the energy

generated at Stampede Powerplant in excess of that needed to serve

project use (Lahontan Fish Hatchery and Marble Bluff Fish Facility) to

Truckee-Donner Public Utility District. Because Truckee-Donner was

unable to obtain transmission service, it was unable to enter into a

contract with Western to receive Stampede energy. In 1988, Western

rescinded the allocation of Stampede energy to Truckee-Donner and

marketed Stampede energy to SPPC under short-term agreements.

In 1990, Western began conducting a bidding process for the sale of

Stampede energy, giving priority to preference entities. Since no

preference entity met the bidding criteria, SPPC continued to purchase

Stampede energy under short-term agreements.

In April 1994, Western executed agreements with SPPC and the Fish

and Wildlife Service (F&WS) which established a mechanism to provide

project use service to the F&WS facilities. These agreements also

provide Western the option to market and transmit all energy, in excess

of that which is required to provide project use service, outside of

SPPC's control area.

Regulatory Procedure Requirements

Regulatory Flexibility Analysis

Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601,

et seq.), each agency, when required to publish a proposed rule, is

further required to prepare and make available for public comment an

initial regulatory flexibility analysis to describe the impact of the

proposed rule on 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) an allocation of power

from Western would not cause an adverse economic impact to 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.

Environmental Compliance

In compliance with NEPA (42 U.S.C. 4321, et seq.), Council on

Environmental Quality NEPA implementing regulations (40 CFR parts 1500-

1508), and DOE NEPA implementing regulations (10 CFR part 1021),

Western completed an environmental impact statement on EPAMP. The

Record of Decision was published in the Federal Register on October 12,

1995 (60 FR 53181). Additionally, as described in the Supplementary

Information Section of this notice, Western and the Environmental

Protection Agency announced the availability of Western's draft EIS on

the 2004 Power Marketing Program in Federal Register notices published

on May 24, 1996 (61 FR

[[Page 8713]]

26174 and 26178, respectively). The draft EIS described the

environmental consequences of a range of reasonable marketing plan

alternatives and identified no significant impacts. The Proposed Plan

falls within the range of alternatives considered. This NEPA review

will assure all environmental effects related to Western's Proposed

Plan have been identified and analyzed.

CVP and Washoe electrical capacity and energy to be marketed is

influenced by available reservoir storage and water releases controlled

by Reclamation within the CVP in California. Pursuant to Title 34 of

Public Law 102-575, the CVP Improvement Act of 1992, Reclamation is

preparing a Programmatic Environmental Impact Statement (PEIS)

addressing improvements to fish and wildlife habitat stipulated in

Public Law 102-575, and potential changes in CVP operations and water

allocations to meet those obligations. The draft PEIS may result in

modifications to CVP facilities and operations that would affect the

timing and quantity of electric power generated by the CVP. Such

changes may, in turn, affect electric power products and services to be

marketed by Western. This Proposed Plan is designed to accommodate

these changes. Western is a cooperating agency in Reclamation's PEIS.

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.

Determination Under Executive Order 12866

DOE has determined that the Proposed Plan 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.

Proposed 2004 Power Marketing Plan

This Proposed Plan addresses: (1) the power to be marketed after

2004; (2) the terms and conditions under which the power will be

marketed; and (3) the criteria to determine who will receive an

allocation.

Within broad statutory guidelines and operational constraints of

the CVP, Western has wide discretion as to whom and on what terms it

will contract for the sale of Federal power as long as preference is

accorded to statutorily defined public bodies. Power must be sold in

such a manner as will encourage the most widespread use at the lowest

possible rates consistent with sound business principles.

I. Acronyms and Definitions

As used herein, the following acronyms and terms, whether singular

or plural, shall have the following meanings:

Administrator: The Administrator of Western Area Power

Administration.

Allocation: An offer to an entity to purchase power from Western.

Allocation Criteria: Conditions applied to all applicants seeking

an allocation.

Allottee: A preference entity receiving an allocation or power

resource extension.

Ancillary Services: Those services necessary to support the

transfer of electricity while maintaining reliable operation of the

transmission provider's transmission system in accordance with good

utility practice. Ancillary services are generally described in Federal

Energy Regulatory Commission Order No. 888, Docket Nos. RM95-8-000 and

RM94-7-001, issued April 24, 1996.

Base Resource: CVP and Washoe Project power output and existing

power purchase contracts extending beyond 2004 determined by Western to

be available for marketing, exclusive of project use and First

Preference entitlements.

Capacity: The electrical capability of a generator, transformer,

transmission circuit or other equipment.

Central Valley Project (CVP): A multipurpose Federal water

development project extending from the Cascade Range in northern

California to the plains along the Kern River south of the City of

Bakersfield.

Contract Principles: Provisions made part of the electric service

contracts which include the General Power Contract Provisions.

Contract Rate of Delivery (CRD): The maximum amount of capacity

made available to a preference customer for a period specified under a

contract.

Curtailable Power: Power which may be curtailed on a real-time

scheduling basis at Western's sole discretion under certain conditions.

Custom Product: A combination of products and services, excluding

provisions for load growth, made available by Western per customer

request, utilizing the customer's Base Resource and supplemental

purchases made by Western at customer expense.

Customer: An entity with a contract and receiving electric service

from Western's Sierra Nevada Region.

Diversity Power: Power made available because of the diversity of

customers' peak demands at the time of Sierra Nevada Region's peak

demand.

Eligibility Criteria: Conditions that must be met to qualify for an

allocation.

Energy: Measured in terms of the work it is capable of doing over a

period of time; electric energy is usually measured in megawatthours.

Energy Planning and Management Program (EPAMP): Western-wide

program developed to encourage customer energy planning (60 FR 54151,

dated October 20, 1995).

Existing Customer: A preference customer with a contract to

purchase firm power, offered under a previous allocation process or

marketing plan, that extends through December 31, 2004.

Extension CRD: Existing customer's CRD exclusive of Diversity and

Curtailable Power, peaking/excess capacity, and NDA Act Power not used

for military loads.

Final Plan: Western's Final 2004 Power Marketing Plan.

Firm: A type of product and/or service that is available to a

customer at the times it is required.

First Preference Customer/Entity: A preference customer and/or a

preference entity (an entity qualified to use, but not using preference

power) within a county of origin (Trinity, Calaveras and Tuolumne) as

specified under the Trinity River Division Act (69 Stat. 719) and the

New Melones Act of the Flood Control Act of 1962 (76 Stat. 1180).

General Power Contract Provisions (GPCP): Standard terms and

conditions which are included in electric service contracts.

Integrated Resource Plan (IRP): A process and framework within

which the costs and benefits of both demand and supply-side resources

are evaluated to develop the least total cost mix of utility resource

options.

Kilowatt (kW): The electrical unit of capacity that equals one

thousand watts.

Load Factor: The ratio of the average load in kW supplied during a

designated period to the peak or maximum load in kW occurring in that

period.

Long-Term: A designation for a contractual period of time greater

than 5 years.

Marketing Area: The area which generally encompasses northern and

central California extending from the Cascade Range to the Tehachapi

Mountains and west-central Nevada.

Megawatt (MW): The unit by which the rate of production of

electricity is

[[Page 8714]]

often measured; one megawatt equals one million watts.

NDA Act: Section 2929 of the National Defense Authorization Act,

Public Law 103-160, 107 Stat. 1547, 1935 (1993), which provides that,

for a 10-year period, the CVP electric power allocations to military

installations in the State of California which have been closed or

approved for closure shall be reserved for sale through long-term

contracts to preference entities which agree to use such power to

promote economic development at the military installations closed or

approved for closure.

NDA Act Power: Power allocated in accordance with the NDA Act

Procedures (59 FR 61604, dated December 1, 1994), which provide for NDA

Act power allocations.

Peaking: The operation of electric powerplants for brief periods

when demand for electricity is greatest.

Power: Capacity and energy.

Power Marketing Initiative (PMI): A component of Western's EPAMP

providing criteria regarding certain Western power marketing programs.

Preference: The requirements of Reclamation law which provide that

preference in the sale of Federal power shall be given to

municipalities and other public corporations or agencies and also to

cooperatives and other nonprofit organizations financed in whole or in

part by loans made pursuant to the Rural Electrification Act of 1936

(Reclamation Project Act of 1939, section 9(c), 43 U.S.C. 485h(c)).

Project Use: Power as defined by Reclamation law and/or used to

operate CVP and Washoe Project facilities.

Proposed Plan: Western's Proposed 2004 Power Marketing Plan.

Reclamation law: Refers to a series of Federal laws with a lineage

dating back to the turn of the century. Viewed as a whole, these laws

create the framework under which Western markets power.

Sierra Nevada Region: The Sierra Nevada Customer Service Region of

Western Area Power Administration.

Unbundled: Electric service that is separated into its components

and offered for sale with separate rates for each component.

Washoe Project: A Federal water project located in the Lahontan

Basin in west-central Nevada and east-central California.

Western: Western Area Power Administration, United States

Department of Energy, a Federal power marketing administration

responsible for marketing the surplus generation from Federal

hydroelectric multipurpose projects pursuant to Reclamation law and the

DOE Organization Act (91 Stat. 565, 42 U.S.C. 7101, et seq.).

Withdrawable: Power that may be withdrawn under certain conditions.

II. Marketable Power Resource

The primary purpose of the CVP and Washoe Project is water control

and delivery. The water control system consists of storage reservoirs

that provide daily, seasonal, and annual flow regulation, and smaller

regulating reservoirs for diverting water and smoothing upstream dam

and powerplant releases. Power generated from these resources depends

on hydrology and water operation requirements. Some of the power

generated is used for project use to operate pumping and fishery

facilities. Currently, project use power is metered at 181 locations in

northern and central California and Nevada.

Expected CVP generation (energy and capacity) for 2005 and beyond

will vary annually, monthly, and daily, based on hydrology and other

constraints that govern CVP operations. CVP generation is available at

generator bus and must be adjusted for project use, maintenance,

reserves, transformation losses, and certain ancillary services before

a Base Resource is available for marketing. Transmission losses will be

pursuant to the terms of a transmission service agreement. The power

resources will also be adjusted for First Preference customers as

described in this Proposed Plan.

The following Table provides estimates of CVP power resources and

adjustments before any power resources are available to customers

beyond 2004:

Table A.--Estimated CVP Power Resources and Adjustments

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

Power resources/adjustment Range/value

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

Annual energy generation.................... 2,400,000-8,600,000 MWh.

Monthly energy generation................... 100,000-1,100,000 MWh.

Monthly capacity............................ 1,100-1,900 MW.

Annual project use.......................... 670,000-1,670,000 MWh.

Monthly project use......................... 10,000-180,000 MWh.

Monthly project use (on peak)............... 30-230 MW.

Monthly maintenance......................... 0-300 MW.

Reserves.................................... 5% of monthly capacity.

CVP transmission and transformation losses 1.8% (as of 1995).

from the generator bus to a 230-kV load bus.

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

All of the power resource adjustments and variables mentioned above

will influence the amount of Base Resource available to customers.

During some critically dry months, purchases may be required to meet

project use and only a minimal amount of Base Resource will be

available during such months. The useability of the Base Resource for

meeting customers'' loads will be directly related to a customer's

ability to integrate this power resource into their power resource mix.

Western proposes to include any power available from existing power

purchase contracts with terms extending beyond 2004 in the Base

Resource. Currently, Western has a contract with Portland General

Electric Company for 65 MW at a 40 percent minimum load factor that has

a final termination date of October 15, 2015.

Western also proposes to market part of the 3.65 MW available from

the Washoe Project with the CVP power resource on an annual basis.

Energy from the Washoe Project, which is estimated to be about 10,000

MWh annually, is currently being provided to F&WS Lahontan National

Fish Hatchery and Marble Bluff Fish Facility. These F&WS facilities are

project use loads of the Washoe Project and have first call on the

power resources from the Washoe Project. All costs associated with

providing F&WS project use service are, by law, nonreimbursable, and

are not included in the Washoe Project energy rates. Energy in excess

of the F&WS needs will be sold under the Final Plan.

Western will continue to make every effort to provide the Washoe

Project power resource to F&WS. F&WS is currently using approximately

50

[[Page 8715]]

percent of Washoe Project generation, and the same percentage of costs

is considered nonreimbursable. Western expects that F&WS loads will

increase, reducing the amount of power resource to be integrated with

the CVP as well as the cost to be repaid from power revenues.

III. Products and Services

Western proposes to market its Base Resource alone or in

combination with the option to purchase a Custom Product. The Custom

Product will be in addition to the optional purchase described in

Section IV.A.2. All costs incurred by Western in providing additional

services to customers will be paid by those customers. The degree to

which Western continues to purchase power will depend on customer

requirements and Federal authorities. All products will be subject to

operational requirements and constraints of the CVP, transmission

availability, and purchase limitations.

Each allottee will be allocated a portion of the Base Resource.

Following execution of a contract pursuant to the Final Plan, Western

will work with each individual allottee to determine the best use of

the Base Resource for that allottee. All allottees will be required to

commit to the Base Resource no later than December 31, 1999.

Upon request, Western will develop a Custom Product for any

allottee. A Custom Product may include use of the Base Resource as firm

power, ancillary services, reserves, etc., or may include Western

purchasing additional resources, including firming energy, to provide

some of these services. Final commitments to a Custom Product must be

made by December 31, 2001, for a period of no less than five (5) years

of service. Thereafter, the Custom Product will be offered for periods

of one (1) year or more.

Any unused power resource available will be marketed under terms

and conditions and for periods of time determined by Western. Products

and services from unused power resources may be made available on a

monthly, weekly, daily, hourly, or nonfirm basis.

Western may offer unused First Preference power, subject to

withdrawal on a pro-rata basis, upon six (6) months written notice.

Western proposes to establish and to manage an exchange program to

allow all customers to fully and efficiently use their power

allocation. Any power allocated by Western to a customer that cannot be

used on a real-time basis due to that customer's load profile must

first be offered under this program to other customers or Western.

Western will not be obligated to exchange or to purchase any surplus

power from the customers on its own behalf. If the surplus power is not

exchanged with other customers or purchased by Western under this

program, it may be offered to others, giving priority to preference

entities.

IV. Proposed Resource Extension and Resource Pool Allocation

On December 31, 2004, Western's long-term CVP power sales contracts

for 1,580,230 kilowatts (kW) will expire. This Proposed Plan addresses

the eligibility for and allocation of CVP and Washoe Project power

after these contracts expire. When allocating power under the Final

Plan, Western proposes to apply the principles of the Power Marketing

Initiative (PMI) of the Energy Planning and Management Program. In

accordance with the PMI, Western proposes to set aside a portion of its

available power resource for new allocations. Based on Western's

evaluation of potential new loads, Western proposes to initially

provide 96 percent of its available power resource to existing

customers and to establish a resource pool for new allocations with the

remaining 4 percent. An additional incremental resource pool of up to 2

percent is proposed for 2014. When calculating the 96 percent resource

extension for existing customers, only CRD classified as Extension CRD

will be considered. Also, no extensions will be greater than an

existing customer's load. Extension CRD amounts are set forth in

Appendix A. Contractual extensions to First Preference customers are

subject to specific legislation and are addressed in Section VI.

A. Extension for Existing Customers

Western proposes that existing customers will have a right to

purchase a percentage of the Base Resource based on the ratio of each

existing customer's Extension CRD to the total of all existing

customers'' Extension CRD under the terms of this Section. However, for

the period from 2005 through 2014, Western is proposing that SMUD will

have a right to purchase 360/1,152 of the Base Resource, as referenced

in the settlement agreement with SMUD, Contract DE-MS65-83WP59070,

dated April 15, 1983. All other existing customers will have a right to

purchase the remaining amount of the Base Resource, after it is

adjusted to accommodate SMUD's rights and the resource pool. After

2014, SMUD's right to purchase the Base Resource will be adjusted to

reflect the ratio of SMUD's Extension CRD (currently 361 MW) to the

total of all existing customers'' Extension CRD. SMUD's rights will

also be adjusted by 4 percent and up to an additional 2 percent to

accommodate the resource pool.

Due to the diversity among existing customers' loads, including

SMUD, existing customers' total Extension CRD exceeds the 1,152 MW

referenced in the SMUD settlement agreement. Western's proposal will

result in SMUD receiving a proportionately greater share of the Base

Resource than other existing customers if the total Extension CRD

remains at a level greater than 1,152 MW. Therefore, Western is also

proposing that through 2014, all existing customers, excluding SMUD, be

given the option to have Western purchase an additional increment of

power, on a pass-through-cost basis, equal to the amount of power

unavailable to them as a result of application of the 360/1,152 ratio.

Existing customers must commit to the optional purchase for an annual

or greater period.

After 2014, each existing customer, including SMUD and those

customers that receive a new allocation under the Final Plan, will have

a right to purchase a pro-rata amount of the Base Resource, adjusted

for the incremental resource pool, based on their long-term purchase

right to the Base Resource.

Western proposes the following extension formulas to determine

existing customers' purchase right to the Base Resource. Application of

these formulas will also determine each existing customer's right to

the optional purchase. Examples of the formulas are provided in

Appendix B. This calculation may be further adjusted for First

Preference customers.

1. For the period 2005 through 2014, existing customers purchase

right to an extension resource will be calculated as follows:

[[Page 8716]]

[GRAPHIC] [TIFF OMITTED] TN26FE97.001

Where:

A = Lesser of individual existing customer's Extension CRD as of

December 31, 2001; or 104 percent of their maximum demand during CY

1997 through 2000. Western reserves the right to adjust the value of

``A'' when it is determined that the maximum demand is not reflective

of an existing customer's load.

B = The sum of all values for ``A''.

BR = Base Resource available.

ABR = Adjusted Base Resource

[GRAPHIC] [TIFF OMITTED] TN26FE97.002

RP% = Resource pool percentage.

2. Existing customer's (excluding SMUD) right to the optional

purchase will be calculated as follows:

[GRAPHIC] [TIFF OMITTED] TN26FE97.003

Where:

TOP = Total Optional Purchase

[GRAPHIC] [TIFF OMITTED] TN26FE97.004

A = Lesser of individual existing customer's Extension CRD as of

December 31, 2001; or 104 percent of their maximum demand during CY

1997 through 2000. Western reserves the right to adjust the value of

``A'' when it is determined that the maximum demand is not reflective

of an existing customer's load.

B = The sum of all values for ``A''.

BR = Base Resource available.

RP% = Resource pool percentage.

C = The sum of all existing customers', including SMUD, Extension CRD.

Western and SMUD have been negotiating an agreement whereby SMUD

would waive its rights to the 360/1,152 ratio in return for additional

services through 2004. If such an agreement is reached, these formulas

will be appropriately adjusted.

3. For the period 2015 through 2024, the rights of all existing

customers, including SMUD and customers receiving a new allocation from

the initial resource pool under the Final Plan, will have a right to a

resource extension equal to their pro-rata share of the Base Resource.

To determine a customer's pro-rata share, each customer's percentage

will first be adjusted based on the change in SMUD's percentage

described earlier in this Section. All customers' percentages,

including SMUD, will then be adjusted to accommodate the incremental

resource pool as determined by Western, up to 2 percent.

B. Resource Pool Allocations:

Western proposes to establish a resource pool by reserving a

portion of the power available after 2004 for allocation to eligible

new and existing customers. Western will apply the following to

determine resource pool allocations.

1. Resource Pool Amount: The resource pool will initially consist

of up to 4 percent of the power resources available after 2004. This

power will be subject to the terms and conditions specified in an

electric service contract. An incremental resource pool is also

proposed in the year 2014. The proposed incremental resource pool will

consist of up to 2 percent of the power resources available after 2014,

plus a portion of the resource that becomes available from adjusting

SMUD's percentage. That portion will be equal to what SMUD would have

been required to contribute to the initial resource pool. SMUD will

also be subject to the 2 percent resource pool adjustment. Allocations

for the incremental resource pool will be determined through a separate

public process at a later date.

Western will, at its discretion, allocate a percentage of the

initial resource pool to individual applicants that meet the

eligibility criteria. This allocation percentage will be multiplied by

the resource pool percentage to determine the applicant's percentage of

the power resource. Allocations from the resource pool are separate

from the resource extension.

2. General Eligibility Criteria: The following general eligibility

criteria will be applied to all applicants seeking an allocation under

the Final Plan.

a. Applicants must meet the preference requirement under section

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

amended and supplemented.

b. Applicants must be located within Sierra Nevada Region's

Marketing Area. (Map of Marketing Area available upon request.)

[[Page 8717]]

c. Applicants that require power for their own use must be ready,

willing, and able to receive and use Federal power.

d. Applicants that provide retail electric service must meet the

requirements of Section IV.B.2.c above, and must require the power for

electric service to their customers, not for resale to others.

e. Applicants must submit an application in response to the notice

calling for applications issued by Western in the Federal Register in

conjunction with the Final Plan. That notice will include the deadline

for receipt of those applications.

f. 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).

g. Applicants must have a load of 1 MW or greater. Western will

normally not allocate amounts less than 1 MW; however, smaller

allocations may be considered, provided Western can aggregate the

applicant's load with other loads to schedule and deliver an aggregated

1 MW.

3. General Allocation Criteria: The following general allocation

criteria will be applied to all applicants seeking an allocation under

the Final Plan.

a. Allocations will be made in amounts as determined solely by

Western in exercise of its discretion under Reclamation law.

b. Allocations under the Final Plan will be available to new

qualified applicants and to existing customers whose Extension CRD set

forth in Appendix A is not more than 15 percent of their peak load in

CY 1996 and not more than 10 MW.

c. The maximum amount of capacity used to determine a resource pool

allocation will be the applicant's peak demand during CY 1996 or the

amount requested, whichever is less, rounded up to the nearest 100 kW.

d. An allottee will have the right to buy power from Western only

upon the execution of an electric service contract between Western and

the allottee, and satisfaction of all conditions in that contract.

e. A customer receiving power from the initial resource pool will

be subject to the incremental resource pool adjustment in 2014.

V. General Criteria and Contract Principles

Western proposes to apply the following criteria and contract

principles to all new and/or existing customers' contracts, except that

certain criteria may not apply to First Preference customers'

contracts, under the Final Plan:

A. Electric service contracts shall be executed within six (6)

months of a contract offer, unless otherwise agreed to in writing by

Western.

B. Percentages shall be subject to adjustment in the future as

provided for in the Final Plan and the electric service contract.

C. All power supplied by Western will be delivered pursuant to a

scheduling arrangement.

D. All power will be provided on a take-or-pay basis. A commitment

must be made to take-or-pay for the service as of the date set forth in

the contract. All costs associated with the products and services

provided, including ancillary services and optional purchases, will be

passed on to the customer(s) using the product or service.

E. Western will offer a contract amendment to existing customers

and a new contract to new allottees to implement the Final Plan.

Contract amendments and contracts shall require commitments to the Base

Resource by the customer on or before December 31, 1999, and the

optional purchase, as well as the Custom Product, on or before December

31, 2001. This will allow for power resources and products to be

developed prior to final commitment by the customer.

F. Withdrawable power marketed under the Final Plan will be subject

to withdrawal on a pro-rata basis upon six (6) months written notice,

as determined by Western.

G. Upon request, Western shall assist each allottee and existing

customer in obtaining third-party transmission arrangements for

delivery of power allocated under the Final Plan; nonetheless, each

entity is ultimately responsible for obtaining its own delivery

arrangements beyond the CVP transmission system.

H. Contracts entered into under the Final Plan shall provide for

Western to furnish electric service effective January 1, 2005 through

December 31, 2024.

I. Specific products and services may be provided for periods of

time as agreed to in the electric service contract.

J. Contracts entered into as a result of the Final Plan shall

incorporate Western's standard provisions for power sales contracts,

IRP, and GPCP.

K. Contracts will include a clause that allows Western to reduce or

rescind a customer's power from Western upon six (6) months notice if

Western determines that the customer is not using this power to serve

its own loads, except as otherwise specified in Section III.

L. Any power not under contract may be allocated by the

Administrator at any time, at the Administrator's sole discretion, or

sold as deemed appropriate by Western.

M. Contracts will include a clause providing for Western to adjust

the customers' percentage of the resource for the incremental resource

pool.

VI. First Preference Entitlement and Allocation

The Trinity River Division Act (69 Stat. 719) and the New Melones

Act of the Flood Control Act of 1962 (76 Stat. 1180) specified that

contracts for the sale and delivery of the additional electric energy

available from the CVP power system as a result of the construction of

the plants authorized by these acts and their integration into the CVP

system shall be made in accordance with preferences expressed in

Federal Reclamation laws. These acts also provided that a first

preference of 25 percent of the additional energy shall be given, under

Reclamation law, to preference customers in the counties of origin

(Trinity and Tuolumne and Calaveras) for use in those counties who are

ready, able and willing to enter into contracts for the energy.

In order to meet the requirements of these acts, Western published

the Final Withdrawal Procedures at 51 FR 7702 on March 5, 1986. The

Final Plan will supersede the Final Withdrawal Procedures.

Western proposes to calculate and allocate the Maximum Entitlements

of First Preference Customers (MEFPC), which is the maximum amount of

energy available to First Preference customers/entities, in accordance

with the following:

A. The MEFPC will be calculated separately for the New Melones

Project, Calaveras and Tuolumne counties, and the Trinity River

Division, Trinity County, (First Preference Projects), to determine the

25 percent of the additional energy made available to the CVP as a

result of the construction of each of these projects. Since the acts do

not specify the basis for calculating the 25 percent of additional

energy, Western proposes that a previous 20-year average historical

generation or actual years of data available, whichever time period is

less, be used to determine the MEFPC. Based on the most current

information available, this calculation would result in an estimated

MEFPC of 95,766 MWh available to the CVP as a result of construction of

the New Melones Project and an estimated MEFPC of 288,285 MWh available

to the CVP as a result of construction of the Trinity River Division.

The MEFPC will be

[[Page 8718]]

recalculated every five (5) years, with the initial recalculation

pertaining to this Proposed Plan being completed by December 31, 2002.

B. Upon recalculation, if the MEFPC from a First Preference Project

is 10 percent above or below the currently effective MEFPC from that

First Preference Project, the MEFPC will be adjusted to reflect that

increase or decrease. Western will notify the affected First Preference

customer(s) at least six (6) months prior to an adjustment being made

to the MEFPC. Upon request, and at its discretion, Western may make

purchases necessary to compensate for any power loss experienced by a

First Preference customer due to recalculation of the MEFPC. The costs

for all purchases made on behalf of a First Preference customer(s) will

be passed on to that First Preference customer(s).

C. An allocation made to a First Preference customer under the

Final Plan will be based on the power requirements of that First

Preference customer. The sum of allocations, including losses, shall

not exceed the MEFPC from each First Preference Project, or a county of

origin's share of the MEFPC, except as allowed under Section VI.G

below.

D. Following execution of a contract amendment or contract pursuant

to the Final Plan, Western will work with each First Preference

customer/entity to identify its power requirements and the best use of

the First Preference entitlement for that First Preference customer.

Each First Preference customer/entity may elect one of the options set

forth below.

1. Full Requirements: Power requirements (capacity and energy),

adjusted for project use and transformation and transmission losses

from the generation bus to the First Preference customer delivery

point, will be at the Base Resource rates. Western will provide the

First Preference customer full requirements up to its right to the

MEFPC. Adjustment for transmission losses shall include losses for CVP

transmission and third-party transmission. The contract between the

First Preference customer and Western will include the appropriate

losses and the load factor to be used to calculate the First Preference

customer's maximum capacity and energy.

2. Percentage: A portion of the MEFPC will be converted to a

percentage of the Base Resource. This option will be served on a take-

or-pay basis. Each First Preference customer selecting this percentage

allocation option will also be subject to the following:

a. A commitment to this option must be made no later than December

31, 2001. If a commitment is not made by December 31, 2001, the full

requirements option will be deemed chosen.

b. This option will be applied in a manner similar to that of the

other customers receiving a power allocation from the CVP.

c. The percentage allocation made to each First Preference customer

under the Final Plan will be applied to the power resource which has

been adjusted for project use and transformation and transmission

losses from the generation bus to the First Preference customer

delivery point, rounded up to the nearest 100 kW. Adjustment for

transmission losses shall include losses for CVP transmission and

third-party transmission.

d. The percentage calculation will be based on a First Preference

customer's load profile for the most recent 12 months preceding the

percentage calculation.

e. A First Preference customer may request an increase in its

percentage allocation by notifying Western in writing at least seven

(7) months in advance of the month in which the increase is to become

effective (increases in percentages are effective the first day of a

month).

E. A First Preference entity may exercise its rights to use a

portion of the MEFPC by providing written notice to Western at least

eighteen (18) months prior to the anniversary date of the First

Preference Project located in its county. Anniversary date means the

successive fifth year anniversary of the date the Secretary of the

Interior declared the availability of power from the powerplants in the

counties of origin. New applications for services to begin on January

1, 2005 under this Proposed Plan must be received eighteen (18) months

prior to January 1, 2002 (i.e., July 1, 2000) for Trinity County and

eighteen months prior to April 5, 2002 (i.e., October 5, 2000) for

Calaveras and Tuolumne counties. Other anniversary years applicable to

this Proposed Plan are 2007, 2012, 2017, and 2022.

F. If the request(s) of First Preference customers/entities for

power, including adjustments for project use and losses, becomes

greater than the MEFPC from that county's First Preference Project,

then Western will allocate the remaining MEFPC to the First Preference

customer(s)/entity(ies) first making a request for a power allocation.

G. Power allocated to First Preference customers/entities in

Tuolumne and Calaveras counties will be subject to the following

additional conditions:

1. Tuolumne and Calaveras counties shall each be entitled to one-

half of the New Melones Project MEFPC.

2. If First Preference customers in either Tuolumne County or

Calaveras County are not using their county's full one-half share, and

a First Preference customer/entity in the other county requests power

in an amount exceeding that county's one-half share, then Western will

allocate the unused power, on a withdrawable basis, to the requesting

First Preference customer/entity. Such power may be withdrawn for use

by a First Preference customer/entity in the county not using its full

one-half share upon six (6) months written notice from Western.

H. Trinity County is currently the sole recipient of the Trinity

River Division's First Preference rights.

I. For planning purposes, First Preference customers may be

required to provide forecasts and other information required by Western

as set forth in the electric service contract.

J. The general criteria and contract principles set forth in

Sections V.A, C, and F through J of this Proposed Plan will apply to

First Preference customers.

VII. Transmission Service

The Federal Energy Regulatory Commission (FERC) issued two closely

related final rules. The first rule, Order No. 888, issued April 24,

1996 (Docket Nos. RM95-8-000 and RM94-7-001), requires public utilities

owning, controlling, or operating transmission lines to file

nondiscriminatory open access tariffs that offer others the same

transmission service they provide themselves. The second rule, Order

No. 889, issued April 24, 1996 (Docket No. RM95-9-000), requires public

utilities to implement standards of conduct and an Open Access Same-

time Information System (OASIS) to share information about available

transmission capacity. Western has agreed to follow the spirit and

intent of FERC Orders 888 and 889. Therefore, Western proposes to

provide transmission services separately from power services. Sierra

Nevada Region's transmission capability will be offered as a separate

unbundled service to all preference customers receiving power pursuant

to the Final Plan. Each customer will have an option to purchase

transmission sufficient to deliver the maximum amount of power it

receives under the Final Plan. Surplus transmission will be available

to all

[[Page 8719]]

preference customers, as well as to other entities.

Issued in Washington, DC on February 19, 1997.

Joel K. Bladow,

Assistant Administrator.

Appendix A.--Existing Customers' CRD Amounts

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

Extension CRD

CRD \1\ (as of 1 2 (CRD less

Existing customers proposed plan excluded types

publication of power) 3 4

date) (kW) (kW)

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

Air Force--Beale........................ 21,575 21,575

Air Force--McClellan.................... 12,000 12,000

Air Force--Onizuka...................... 1,500 1,500

Air Force--Travis....................... 12,651 12,651

Air Force--Travis / David Grant Medical

Center................................. 4,000 4,000

Air Force--Travis Wherry Housing........ 1,400 1,400

Alameda, City of........................ 21,145 21,145

Arvin-Edison Water Storage District..... 30,000 30,000

Avenal, City of......................... 622 622

Banta-Carbona Irrigation District....... 3,700 3,700

Bay Area Rapid Transit District......... 4,000 4,000

Biggs, City of.......................... 4,200 4,200

Broadview Water District................ 500 500

Byron-Bethany Irrigation District....... 2,200 2,200

Calaveras Public Power Agency........... 7,000 ..............

California State University, Sacramento--

Nimbus................................. 40 40

Castle Joint Powers Authority........... 3,000 ..............

Cawelo Water District................... 500 500

Corrections--California State Prison-

Sacramento............................. 2,300 2,300

Corrections--Deuel Vocational Institute. 1,700 1,700

Corrections--Northern California Youth

Center................................. 1,700 1,700

Corrections--Sierra Conservation Center. 3,000 ..............

Corrections--Vacaville Medical Facility. 1,800 1,800

Defense Logistics Agency--Sharpe

Facility............................... 4,000 4,000

Defense Logistics Agency--Tracy Facility 3,800 3,800

Delano-Earlimart Irrigation District.... 987 987

East Bay Municipal Utility District..... 1,965 1,965

East Contra Costa Irrigation District... 2,000 2,000

East Contra Costa Irrigation District,

P.P. #3................................ 500 500

Energy--Lawrence Berkeley National

Laboratory............................. 11,000 11,000

Energy--Lawrence Livermore National

Laboratory............................. 16,711 16,711

Energy--Site 300........................ 2,500 2,500

Energy--Stanford Linear Accelerator

Center................................. 47,403 38,403

Glenn-Colusa Irrigation District........ 3,343 3,343

Gridley, City of........................ 9,400 9,400

Healdsburg, City of..................... 3,241 3,241

James Irrigation District............... 987 987

Kern-Tulare Water District.............. 987 987

Lassen Municipal Utility District....... 3,000 3,000

Lindsay-Strathmore Irrigation District.. 987 987

Lodi, City of........................... 13,236 13,236

Lompoc, City of......................... 5,197 5,197

Lower Tule River Irrigation District.... 1,965 1,965

Modesto Irrigation District............. 10,805 10,805

NASA--Ames Research Center.............. 80,000 80,000

NASA--Moffett Federal Airfield.......... 5,009 ..............

Navy--Concord Weapons Station........... 2,398 2,398

Navy--Dixon Radio Station............... 915 915

Navy--Lemoore Air Station............... 18,000 18,000

Navy--Mare Island Shipyard.............. 6,000 6,000

Navy--Oakland Army Base................. 2,275 2,275

Navy--Oakland Supply Center............. 7,000 7,000

Navy--Stockton Communications Station... 3,700 3,700

Navy--Treasure Island Station........... 4,000 4,000

Palo Alto, City of...................... 175,000 175,000

Parks & Recreation, California

Department of--Folsom.................. 100 100

Parks Reserve Forces Training Area...... 500 500

Patterson Water District................ 2,000 2,000

Plumas-Sierra Rural Electric Cooperative 25,000 25,000

Provident Irrigation District........... 750 750

Rag Gulch Water District................ 500 500

Reclamation District 2035............... 1,600 1,600

[[Page 8720]]

Redding, City of........................ 116,000 116,000

Roseville, City of...................... 69,000 69,000

Sacramento Municipal Utility District\5\ 361,000 361,000

Sacramento Municipal Utility District... 100,000 ..............

San Juan Water District................. 1,000 1,000

San Luis Water District-Fittje.......... 3,250 3,250

San Luis Water District-Kaljian......... 3,400 3,400

Santa Clara, City of.................... 216,532 136,532

Santa Clara Valley Water District....... 987 987

Shasta Lake, City of.................... 11,450 11,450

Sonoma County Water Agency.............. 1,500 1,500

Terra Bella Irrigation District......... 987 987

Trinity County Public Utilities District 17,000 ..............

Tuolumne Public Power Agency............ 7,000 ..............

Turlock Irrigation District............. 3,941 3,941

Ukiah, City of.......................... 8,773 8,773

University of California, Davis......... 14,682 14,682

West Side Irrigation District........... 2,000 2,000

West Stanislaus Irrigation District..... 5,200 5,200

Westlands Water District, Assumed Point

of Delivery............................ 6,684 6,684

Westlands Water District, Pumping Plant

#7-1................................... 3,200 3,200

Westlands Water District, Pumping Plant

#6-1................................... 1,850 1,850

Temporarily unallocated NDA Act power... 5,500 5,500

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

1,580,230 1,349,221

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

Notes:

\1\ CRD temporarily laid off and reallocated to other existing customers

is reflected in this Appendix A, under both CRD and Extension CRD, as

being returned to the existing customer who received the original

allocation.

\2\ The Extension CRD will be reduced if an existing customer is not

using its full CRD (based on the peak demand experienced during CY

1997 through 2000).

\3\ Exclusions are Diversity and Curtailable Power, peaking/excess

capacity, First Preference entitlements, and NDA Act power not used

for military loads.

\4\ May be adjusted for conversion from project use power to preference

power due to Federal facility transfers to existing project use

customers.

\5\ Sacramento Municipal Utility District's Extension CRD will be

360,000 kW if the 360/1,152 ratio is used for resource extension

purposes.

Appendix B--Examples of Existing Customers' Resource Extension Proposal

2005 Through 2014

Assumptions:

An existing customer with an Extension CRD of 100 MW.

Base Resource after 2004 is 1000 MW.

Sum of all existing customers' Extension CRD is 1,349 MW.

Initial resource pool is 4%.

Incremental resource pool is 2%.

All amounts are rounded.

1. For the period 2005 through 2014, an existing customer's

percentage right to a resource extension will be calculated as follows:

[GRAPHIC] [TIFF OMITTED] TN26FE97.005

Where:

A=Lessor of individual existing customer's (excluding SMUD) Extension

CRD as of December 31, 2001; or 104 percent of their maximum demand

during CY 1997 through 2000. Western reserves the right to adjust the

value of ``A'' when it is determined that the maximum demand is not

reflective of an existing customer's load.

B=The sum of all values for ``A''.

BR=Base Resource available.

ABR=Adjusted Base Resource

[GRAPHIC] [TIFF OMITTED] TN26FE97.006

[[Page 8721]]

RP%=Resource pool percentage.

Calculation:

SMUD's purchase rights=

(360/1,152) x BR

(360/1,152) x 1,000

0.3125 x 1,000

312.5 MW

Existing 100 MW customer's purchase rights=

(A/B) x ABR

(100/988) x ABR

0.101 x 660

67 MW

ABR=

{BR-[(360/1,152) x BR]} x (100%-RP%)

{1,000-[(360/1,152) x 1,000]} x (100%-4%)

[1,000-(0.3125 x 1,000)] x 96%

(1,000-312.5) x 96%

687.5 x 96%

660 MW

2. Existing customer's (excluding SMUD) rights to the optional

purchase will be calculated as follows:

[GRAPHIC] [TIFF OMITTED] TN26FE97.007

Where:

A = Lessor of individual existing customer's Extension CRD as of

December 31, 2001; or 104 percent of their maximum demand during CY

1997 through 2000. Western reserves the right to adjust the value of

``A'' when it is determined that the maximum demand is not reflective

of an existing customer's load.

B = The sum of all values for ``A''.

C = The sum of all existing customers', including SMUD, Extension CRD.

BR = Base Resource available.

RP% = Resource pool percentage.

TOP = Total optional purchase

[GRAPHIC] [TIFF OMITTED] TN26FE97.008

Calculation:

Individual existing 100 MW customer's optional purchase=

(A/B x TOP

(100/988) x TOP

0.101 x 43.1

4.4 MW

TOP=

{[(360/1,152)-(361/1,349)] x BR} x (100%-RP%0)

{[(360/1,152)-(361/1,349)] x 1,000} x (100%-4%)

[(.3125-0.2676) x 1,000] x 96%

(0.0449 x 1,000) x 96%

44.9 x 96%

43%

[FR Doc. 97-4695 Filed 2-25-97; 8:45 am]

BILLING CODE 6450-01-P