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 of replacement resources methods report

and executive summary.

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SUMMARY: The Secretary of Energy, acting through Western, has the

responsibility of marketing hydroelectric power generated at Glen

Canyon Dam Powerplant. Western has been engaged in the Replacement

Resources Process to identify economically and technically feasible

methods for replacing power resources that are lost due to long-term

operational constraints at Glen Canyon Dam Powerplant. Western

announces the availability of the Replacement Resources Methods Report

(Report) and the Executive Summary, which satisfies the requirement in

section 1809 of the Grand Canyon Protection Act (GCP Act) of 1992,

Title XVIII of Pub. L. 102-575.

ADDRESSES: To request a copy of the Report and/or Executive Summary or

to provide written comments on the Report, contact: Mr. S. Clayton

Palmer, Resource and Environmental Analysis Team, CRSP Customer Service

Center, Western Area Power Administration, P.O. Box 11606, Salt Lake

City, UT 84147-0606.

FOR FURTHER INFORMATION CONTACT: Samuel D. Loftin, (801) 524-6381.

SUPPLEMENTARY INFORMATION: The Report outlines the economically and

technically feasible methods that Western will use to evaluate and

select resources to replace capacity made unavailable (``or lost'') due

to the adoption of long-term operational criteria for Glen Canyon Dam

as required by the GCP Act. The Report includes a ``proof-of-concept''

analysis of five hypothetical resource options with varying degrees of

complexity. The methods are consistent with other Western resource

acquisition policies, such as Western's Principles of Integrated

Resource Planning (IRP). The methods are also consistent with the Salt

Lake City Area/Integrated Projects Contract Amendment, the Records of

Decision in the Salt Lake City Area/Integrated Projects Power Marketing

Environmental Impact Statement (EIS) and Energy Planning and Management

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

Energy Regulatory Commission orders,

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and laws affecting DOE, Western, and the Colorado River Storage Project

(CRSP).

In the Report, Western provides methods to replace lost capacity

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

or more) resource acquisitions. Western will consult with firm power

customers periodically about the amount and term of resource

acquisitions to be made on their behalf, which Western would then

acquire and deliver to them. Western will evaluate and select resources

based on criteria broadly defined in the Report and follow a least-cost

strategy. Greater public involvement and more complex evaluation

procedures and acquisition methods will be used for long-term

acquisitions rather than for seasonal acquisitions.

Western will use a screening tool and a production cost computer

model to evaluate future resource offers from potential suppliers. The

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 tools' abilities to

survey and select from among many diverse replacement resource options

and to consider transmission system constraints and possible solutions.

The Report concludes that the screening criteria and evaluation tools

developed will enable Western to select economically and technically

feasible replacement power resources.

Public Involvement

Section 1809 of the GCP Act requires the Secretary of Energy to

consult with representatives of the CRSP power customers, environmental

organizations, the Colorado River Basin States, and with the Department

of the Interior in this process. Western published a notice initiating

the formal, public consultation process on August 8, 1994, at 59 FR

40357. On October 7, 1994, at 59 FR 51191, Western announced four

regional public consultation meetings.

A 20-page, Replacement Resources Information Packet was prepared

that included Western's process to complete the method identification

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

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

notice, to 900-plus organizations and individuals on Western's

Replacement Resources Methods mailing list, including representatives

of organizations with which Western was required to consult. In

November 1994, Western held four regional public involvement meetings

in Salt Lake City, Utah; Denver, Colorado; Phoenix, Arizona; and

Albuquerque, New Mexico. Comments from organizations and the public

were accepted through December 19, 1994, the comment deadline.

Western prepared newsletters in February and October 1995 that

provided updates on the status of replacement resources activities.

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 representatives of

the Department of the Interior, Bureau of Reclamation. This update

included a discussion of public comment received by Western.

On July 2, 1996, Western published a notice of availability of a

Draft Methods Report at 61 FR 34433. Notice was made to those entities

who responded to Western's mailer and wanted information or copies of

the Draft Report. Western held public consultation meetings at

Albuquerque, Phoenix, Denver, and Salt Lake City between July 23 and

July 29, 1996. At these meetings, Western presented the proposed

replacement resource methods, which will be implemented with the

Report. A 60-day public comment period closed on September 3, 1996.

Western mailed a subsequent newsletter in December 1996, updating

changes implemented by Western from the comments received during the

public comment period.

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 identified.

Regulatory Requirements

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.

Dated: May 4, 1998.

Michael S. Hacskaylo,

Administrator.

[FR Doc. 98-13103 Filed 5-15-98; 8:45 am]

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