UNITED STATES OF AMERICA

BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION

United States Department of ) Energy - Western Area ) Docket No. NJ98-
-000

Power Administration )

[WESTERN AREA POWER ADMINISTRATION\'S]{.underline}

[PETITION FOR A DECLARATORY ORDER]{.underline}

[APPROVING TRANSMISSION TERMS AND CONDITIONS]{.underline}

The United States Department of Energy, Western Area Power
Administration (Western), hereby submits its open-access transmission
service tariff terms and conditions, hereafter referred to as Tariff, to
the Federal Energy Regulatory Commission (Commission). Western is
committed to meeting the Commissions golden rule of comparability - to
offer to provide to others the same transmission service it provides to
itself. Under this Tariff, Western will provide network integration and
point-to-point transmission service to others under the same terms and
conditions as are required of public utilities, except as otherwise
required by Federal laws which govern Westerns activities and except for
its use of processing fees (which has conceptually been approved by the
Commission).

In accordance with Rule 207 of the Commissions Rules of Practice and
Procedure, 18 C.F.R. 385.207, and with 18 C.F.R. 35.28(e), Western is
requesting a declaratory order that its voluntary transmission tariff
meets or exceeds the requirements of the Commissions Orders No. 888,
888-A, and 888-B (Final Rule on Open Access and Stranded Costs), FERC
Stats. & Regs. 31,036 (1996), 78 FERC 61,220 (1997), and 81 FERC 61,248
(1997), respectively. In addition, Western is seeking a waiver from
requirements of the Commissions Orders No. 888, 888-A, and 888-B which
would otherwise require Western to act contrary to the laws which govern
its activities.

[I. BACKGROUND INFORMATION ABOUT WESTERN]{.underline}

The Western Area Power Administration was established as a part of the
United States Department of Energy (DOE) pursuant to Section 302 of the
DOE Organization Act, 42 U.S.C. 7152(a) (1977), to market and transmit
Federal power. Western markets and transmits Federal power surplus to
project needs in 15 central and western states encompassing a geographic
area of 3.38 million-square- kilometers (1.3 million-square-miles).
Power used for project needs, usually for project irrigation purposes,
is called project use power.

Western has four Regional Offices and the Colorado River Storage Project
Customer Service Center (CRSP CSC), each referred to in the Tariff as a
Regional Office. Westerns Regional Offices market power generated by the
facilities of 14 Federal multipurpose water resource projects. A few of
the projects have been combined for marketing and rate-making purposes.

The Regional Offices have several separate rate-setting systems. The
CRSP CSC, located in Salt Lake City, Utah, markets power from three
Federal multipurpose water development projects - the Colorado River
Storage Project, the Collbran Project, and the Rio Grande Project,
collectively called the Salt Lake City Area-Integrated Projects. It
transmits Federal and non-Federal power over the CRSP transmission
system. The CRSP CSC presently operates a control area, but will cease
its control area operations in the near future. Its facilities will then
lie within the control areas of Westerns Desert Southwest Region (DSR)
and Rocky Mountain Region (RMR). The CRSP CSC is a member of two
regional transmission groups (RTGs) - the Western Regional Transmission
Association (WRTA) and Southwest Regional Transmission Association
(SWRTA). It operates within the Western Systems Coordinating Council
(WSCC) reliability criteria.

The DSR markets power from the Boulder Canyon Project as required by the
Hoover Powerplant Act; Navajo Generating Station, a part of which is a
feature of the Central Arizona Project; and Parker-Davis Project (P-DP).
The DSR will use transmission facilities of the P-DP and the Pacific
Northwest-Pacific Southwest Intertie (Pacific AC Intertie) in the
implementation of this Tariff. Those facilities are located in Arizona,
California, and Nevada. The DSR office and control area operations
center are located in Phoenix, Arizona. The DSR is a member of SWRTA and
WRTA. It operates its system within the WSCC reliability criteria.

The RMR markets power from the Pick-Sloan Missouri Basin Program -
Western Division (P-SMBP-WD) and the Fryingpan - Arkansas Project
(Fry-Ark). It manages transmission facilities in the states of Colorado,
Wyoming, Nebraska, and Kansas which were constructed for the primary
purpose of marketing power from the P-SMBP-WD. The RMR office and
control area operations center are located in Loveland, Colorado. The
RMR is a member of WRTA and its system is operated within the WSCC
reliability criteria.

The Sierra Nevada Region (SNR), located in Folsom, California, markets
power from the Central Valley Project (CVP) and manages the CVP
transmission facilities in California. These facilities were constructed
for the primary purpose of marketing power resources from the CVP. SNR
also has ownership rights to capacity in two multi-party transmission
systems, the Pacific AC Intertie, and the California-Oregon Transmission
Project (COTP). Congress authorized SNRs participation in the Pacific AC
Intertie for the purpose of importing power from the Pacific Northwest.
COTP rights were acquired pursuant to Public Law 98-630, primarily for
the purpose of delivering power to the United States Department of
Energy Laboratories (DOE Labs) and Federal fish and wildlife refuges.
Long-term use of the Pacific AC Intertie and COTP by third parties is
restricted under existing contracts. The SNR is a member of WRTA and
operates within the WSCC reliability criteria. The SNR does not operate
a control area and as such may be unable to provide some or all of the
services under the Tariff, including but not limited to, ancillary
services and Network Integration Transmission Service.

Westerns Upper Great Plains Region (UGPR) markets power from the
Pick-Sloan Missouri Basin Program - Eastern Division and manages
transmission facilities in the states of Montana, North Dakota, South
Dakota, Nebraska, Minnesota, and Iowa which were constructed primarily
for that purpose. The UGPR office is located in Billings, Montana. The
UGPR manages a control area operations center in Watertown, South
Dakota. The eastern portion of the UGPR system is operated in the
Mid-Continent Area Power Pool (MAPP) reliability council. The western
portion of the system is operated in the Western Systems Coordinating
Council.

The UGPR transmission facilities are integrated with the transmission
facilities of the Basin Electric Power Cooperative (Basin) and Heartland
Consumers Power District (Heartland) such that transmission services are
provided over an integrated transmission system. (Both Basin and
Heartland also own generating facilities and deliver the output of those
resources to their respective members. Basin and Heartland reserve
sufficient capacity in their transmission facilities to deliver that
output.)

Western is not a public utility under Sections 205 and 206 of the
Federal Power Act and is not, therefore, subject to the requirements of
the Commissions Orders No. 888,

888-A, and 888-B. Western is, however, a transmitting utility subject to
Section 211 of the Federal Power Act as amended by the Energy Policy Act
of 1992, and an agency of the Department of Energy, which issued a Power
Marketing Administration Open Access Transmission Policy supporting the
intent of the Commissions Notice of Proposed Rulemaking for Open Access
Transmission, FERC Stats. & Regs. 32,514 (1995).

Westerns Regional Offices have reserved sufficient transmission capacity
on the transmission systems they own, control or manage to meet their
existing transmission commitments. Those transmission commitments are in
their existing contracts to provide project use power and long-term firm
capacity and/or energy, and their existing firm transmission-only
contracts. They determine the available transmission capability on their
transmission systems consistent with Orders No. 888, 888-A, and 888-B,
and the provisions of applicable RTGs concerning the calculation of
available transmission capacity, as provided in Attachment C to the
Tariff. Nothing in the Tariff is intended to alter, amend or abridge the
existing statutory or contractual obligations of Western to market and
transmit Federal power resources and to repay the Federal investment in
the projects.

[II. BACKGROUND INFORMATION ABOUT WESTERNS TARIFF]{.underline}

The Tariff provides for each of Westerns Regional Offices to provide
network integration transmission service and point-to-point transmission
service using the available transmission capability in the transmission
facilities which it owns, controls, or operates. The Tariff applies to
each Regional Offices use of those facilities for its third party sales.
The Tariff is consistent with the Commissions Orders No. 888, 888-A, and
888-B to the extent lawful, given the myriad Federal laws governing
Westerns activities. Any facility construction or interconnection
necessary to provide transmission service will be subject to Westerns
General Requirements for Interconnection which are available upon
request. Customer-specific terms and conditions for providing
transmission service under the Tariff, such as points of receipt and
delivery, will be included in a Service Agreement.

Western is seeking a declaratory order only concerning the terms and
condition of the Tariff. Westerns Regional Offices have already
developed power and transmission rates for eleven different projects or
combinations of projects under separate public processes pursuant to
applicable Federal law and regulations. Those rates have already been
approved by the Commission. The Regional Offices are in various stages
of development of new transmission and ancillary services rates for
transmission to be offered under the Tariff, and will submit them
separately for the Commissions approval, as provided under DOE
Delegation Order No. 0204-108, 58 FR 59,716 (November 10, 1993). The
rates and charges for transmission service using the facilities owned,
controlled or operated by a specific project will be set forth in the
appropriate Regional Offices rates schedules for that project, attached
to each Service Agreement.

Western has already marketed the maximum practical amount of power from
each of its projects, based on a reasonable level of risk, leaving
little or no Federal hydroelectric power resources available for
ancillary services. Changes in water conditions frequently affect the
ability of the hydroelectric projects to meet obligations on a
short-term basis. The unique characteristics of the hydro resource,
Westerns existing long-term power commitments, and the limitations of
the resource due to changing water conditions limit Westerns ability to
provide new transmission customers generation-related ancillary services
and redispatching using Federal hydro resources. Consequently, Western
will provide ancillary services by purchasing power resources whenever
necessary.

[III. DEVELOPMENT OF THE TARIFF]{.underline}

In early 1996, Western began developing a Tariff Equivalent Package
(TEP) that would conform to the principles set forth in the Commissions
Orders No. 888 and 888A. A draft TEP, designed as a Western-wide
document that would contain Region-specific rates and charges, was
completed in July 1996 and sent to Westerns electric service customers,
transmission-service customers, and other interested parties for review
and comment. Western accepted comments through November 1996. After
evaluating comments, Western modified its original concept of preparing
a Western-wide TEP and began developing Regional Open Access
Transmission Service Guidelines (Regional Guidelines) for each of its
Regional Offices. The Regional Guidelines contained service agreements
consistent with the specific conditions applicable to each Region. The
resulting documents were sent to electric service customers,
transmission customers, and other interested parties for review and
comment in April 1997. The review period for those documents ended in
early June 1997. Customer and interested party participation was
conducted informally. Western then returned to its original idea of a
single Western-wide tariff containing non-rate terms and conditions. It
issued a Federal Register notice of the proposed tariff, published at 62
FR 50,572 (September 26, 1997). On October 7, 1997, Western held a
combined public information and public comment forum on the proposed
tariff. A formal comment period lasted for 31 days. Comments received
during the comment period were considered in the development of a final
Tariff, which will be effective thirty days after it is published.

The Tariff includes Attachment J, Provisions Specific to the
Transmission Provider, and Attachment K, Authorities and Obligations,
which are specific to Western and are not found in the Commissions Order
No. 888A, Exhibit B, *Pro Forma* Tariff (as amended by Order No. 888-B).

[IV. DIFFERENCES BETWEEN WESTERNS TARIFF]{.underline}

[AND THE COMMISSIONS]{.underline}

The differences between Westerns Tariff and the Commissions *Pro Forma*
Tariff are based on the laws which govern Westerns actions, as explained
in more detail below:

1\. Western modified the language of Sections 1.5, 15.3, 17.3, 17.4,
17.6, 19.1, 19.4, 20.3, 22.2, 29.2, 32.1, 32.4, and Attachment A to
require applicants to pay application processing fees, calculated to
recover the costs of processing applications from the applicants,
instead of submitting refundable deposits to Western. Western will
charge a processing fee, to appropriately place the costs of processing
the application with the applicant, not Westerns existing customers. The
Commission approved a similar provision in the Bonneville Power
Administration (BPA) tariff. *See* 80 FERC 61,119 (1997).

2\. Western changed language in Sections 1.2, 1.10, 1.45, 1.46, 2.2, 3,
7.3, 9, 12.1, 13.3, 13.4, 14.3, 14.4, 15.3, 15.7, 17.6, 19.3, 20.3, 26,
28.5, 29.1, 29.5, 32.3, 34, 34.5, Schedules 1 through 8, and Attachments
A, B, H and J(Section 1.0 only) to reflect the fact that it is not a
public utility and is not subject to the Commissions jurisdiction under
Sections 205 and 206 of the Federal Power Act. As a result, Western does
not submit its contracts for Commission approval, nor does it seek
Commission permission to terminate contracts. Western added language to
Sections 7.3, 15.3, 29.1, 29.2, and 31.5 to provide some additional
assurances to the transmission customer to offset concerns that might be
raised by Westerns deletion of the language which is inapplicable to it
as a non-public utility.

Western is not subject to the same rate procedures as are public
utilities. Western develops new rates using public comment procedures.
They are placed in effect on an interim basis by the Deputy Secretary of
DOE, and then submitted to the Commission for its approval. Western
develops its rates and they are placed into effect in accordance with a
number of Federal laws and regulations and DOE Orders, including laws
applicable to specific Federal projects from which Western markets or
transmits power. These include: Section 501 of the Department of Energy
Organization Act, 42 U.S.C. 7191; the Reclamation Act of 1902, as
amended and supplemented by subsequent enactments, particularly Section
9(c) of the Reclamation Project Act of 1939, 43 U.S.C. 485h(c), and
other acts specifically applicable to the projects involved; Amendment
No. 3 to DOE Delegation Order No. 0204-108; DOE procedures for public
participation in power rate adjustments in 10 C.F.R. Part 903; DOE Order
RA 6120.2, dated 9-20-79; and the Commissions procedures at 18 C.F.R.
Part 300.

3\. Western is prohibited by the Anti-Deficiency Act, 31 U.S.C. 1341,
from obligating or spending money which it does not already have in an
appropriation or fund. Section 2.0 of Attachment J is standard Federal
contract language which must be included in Federal multi-year
contracts, because of the Antideficiency Act. Another result is that
Western must obtain funds from any transmission applicant in advance of
performing work for it under the Tariff. This necessitated changes to
Sections 13.5, 15.4, 19.1, 19.2 (heading only), 19.4, 19.8, 20.3, 23.2,
28.2, 31.5, 32.1, 32.2 (heading only), and 32.4. Western also added
language to Sections 19.4 and 32.4 to clarify that it will refund any
amounts advanced in excess of costs incurred, consistent with the
Commissions policies in issuing Order 888.

4\. Western added a sentence to Section 10.2 to alert potential
transmission customers to the fact that Westerns liability in cases of
negligence or intentional wrongdoing is limited under Federal law. Its
liability for negligent acts is set forth in the Federal Tort Claims
Act, 28 U.S.C. 2671-2680. Also, Western cannot agree to indemnify others
when the amount of the governments liability is indefinite and
potentially unlimited. To do so would violate the Antideficiency Act, 31
U.S.C. 1341, and the Adequacy of Appropriations Act, 41 U.S.C. 11.

5\. Western changed Sections 12.2 through 12.4 to accommodate the
statutory, regulatory and Constitutional limitations on its ability to
enter into binding arbitration. *See*, for example, 5 U.S.C. 571-583;
and 9 U.S.C. 1-14. Westerns language provides that its Regional Offices
will resolve disputes pursuant to the terms of the RTGs to which they
belong. Western used language in BPAs tariff which the Commission
approved at 80 FERC 61,119 (1997).

6\. Western added a sentence to Section 3 to make clear that it does not
have much, if any, uncommitted generation available to provide ancillary
services under the Tariff, so it will purchase generation for ancillary
services as needed, and pass the costs through to the customer.

7\. Western modified Sections 1.46, 15.7, 17.1, and 28.5, and
Attachments A, B, D, F, and G of the Tariff and added Attachment K to
recognize that each of its Regional Offices will be a transmission
provider and will act independently in providing services, developing
rates, and determining transmission losses under the Tariff. Each
Regional Office will act only regarding the particular projects and
facilities under its own ownership, control or management.

In Sections 15.7 and 28.5 of the Tariff, Western did not state a system
loss factor. Instead, those sections of the Tariff indicate that the
applicable system loss factor will be specified in the Service
Agreement. This change was essential because the Tariff applies to each
of Westerns five Regional Offices. Each Regional Office has a different
transmission system under its ownership, management, and/or control, and
each has a different system-wide loss factor. Each Regional Office will
insert its system-wide loss factor in the appropriate section of the
Service Agreement when it provides service under this Tariff.

8\. Western changed the reference in Section 19.2(iii) of the Tariff
from Section 20\" to Section 8\" as a correction. Sections 8 and
19.2(iii) both concern the transmission providers separation of costs it
incurs for activities conducted on its own behalf. Section 20, however,
concerns activities the transmission provider undertakes for a
transmission customer.

9\. Sections 3.0 through 6.0 of Attachment J are required by Federal
law, i.e., 41 U.S.C. 254; 40 U.S.C.

329; 202 of Executive Order 11246; and Executive Order 11755,
respectively, to be included in Federal contracts.

Sections 7.0, 8.0, 9.0, and 10.0 of Attachment J are included as a
matter of good contract law. Sections 11.0 and 12.0 of Attachment J are
contract provisions which Western has used often and which Western will
include in a Service Agreement only with the agreement of the customer.

10\. The words Federal law were inserted in Section 18.2, because
Westerns decisions about what it can or cannot legally disclose are
determined with reference to the Freedom of Information Act, 5 U.S.C.
552, and applicable Federal regulations.

[V. PERSONS TO BE SERVED]{.underline}

The persons upon whom service is to be made and to whom communications
are to be addressed in this proceeding are:

David Sabo, Manager

Colorado River Storage Project

Customer Service Center

Western Area Power Administration

257 East 200 South, Suite 475

Salt Lake City, UT 84111-2048

\(801\) 524-5493 (phone)

\(801\) 524-5017 (fax); and

M. Susan Earley

Office of General Counsel

Western Area Power Administration

1627 Cole Blvd.

Golden, CO 80401-3398

\(303\) 275-1806 (phone)

\(303\) 275-1888 (fax)

[VI. CONCLUSION]{.underline}

Western is committed to meeting the Commissions rule of comparability -
to offer to provide to others the same transmission service it provides
to itself. Under this Tariff, Western will provide network integration
and point-to-point transmission service to others under the same terms
and conditions as are required of public utilities, except as otherwise
required by the Federal laws which govern Westerns activities and except
for its use of processing fees (which has conceptually been approved by
the Commission). THEREFORE, WESTERN RESPECTFULLY REQUESTS THAT THE
COMMISSION:

1\. Issue a declaratory order that Westerns voluntary transmission
tariff meets or exceeds the requirements of the Commissions Orders No.
888, 888-A, and 888-B (Final Rule on Open Access and Stranded Costs);
and

2\. Grant Western a waiver from requirements of the Commissions Orders
No. 888, 888-A, and 888-B which would otherwise require Western to act
contrary to the laws which govern its activities.

Dated December , 1997, in Golden, Colorado.

Respectfully submitted,

M. Susan Earley, Esq.

Office of General Counsel

Western Area Power Administration

1627 Cole Blvd.

Golden, CO 80401-3398

303-275-1806

UNITED STATES OF AMERICA

BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION

United States Department of ) Energy - Western Area ) Docket No. NJ98-
-000

Power Administration )

[WESTERN AREA POWER ADMINISTRATION\'S]{.underline}

[PETITION FOR A AN EXEMPTION]{.underline}

[FROM FILING FEES]{.underline}

The United States Department of Energy, Western Area Power
Administration (Western), hereby seeks an exemption in lieu of paying a
filing fee applicable to petitions for declaratory orders because it is
an agency of the United States Department of Energy and, therefore
exempt from filing fees, as provided in 18 C.F.R. 381.102(a),
381.108(a), and 381.302(c). Western is an agency of the United States
Department of Energy and is engaged in official business of the Federal
Government in filing the accompanying petition for a declaratory order
that its open-access transmission service tariff terms and conditions
with the Federal Energy Regulatory Commission (Commission), in
accordance with Rule 207 of the Commissions Rules of Practice and
Procedure, 18 C.F.R. 385.207, and with 18 C.F.R. 35.28(e).

Western, therefore, in accordance with the Commissions regulations at 18
C.F.R. 381.102(a), 381.108, and 381.302(c), hereby requests an exemption
in lieu of a fee.

Dated November 14, 2023 in Golden, Colorado.

Respectfully submitted,

M. Susan Earley

Attorney

Office of General Counsel

Western Area Power Administration

P.O. Box 3402

Golden, CO 80401-0098

303-275-1806

UNITED STATES OF AMERICA

BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION

United States Department of ) Energy - Western Area )

Power Administration ) Docket No. NJ98- -000

[WESTERN AREA POWER ADMINISTRATION\'S]{.underline}

[NOTICE OF FILING]{.underline}

Take notice that on , 1997, the United States Department of Energy,
Western Area Power Administration (Western), submitted its open-access
transmission service tariff terms and conditions with the Federal Energy
Regulatory Commission (Commission). In accordance with Rule 207 of the
Commissions Rules of Practice and Procedure, 18 C.F.R. 385.207, and with
18 C.F.R. 35.28(e), Western is requesting a declaratory order that its
voluntary transmission tariff meets or exceeds the requirements of the
Commissions Order No. 888 (Final Rule on Open Access and Stranded
Costs). In addition, Western is seeking a waiver from requirements of
the Commissions Order No. 888, which would require Western to act
contrary to the laws which govern its activities. Western is also
seeking an exemption in lieu of paying a filing fee applicable to
petitions for declaratory orders because it is an agency of the United
States Department of Energy and, therefore exempt from filing fees, as
provided in 18 C.F.R. 381.102(a), 381.108(a), and 381.302(c).

Any person desiring to be heard or to protest the filing should file a
motion to intervene or protest with the Federal Energy Regulatory
Commission, 888 First Street, N.E., Washington, D.C. 20426, in
accordance with Rules 211 and 214 of the Commissions Rules of Practice
and Procedure, 18 C.F.R. 385.211 and 385.214. All such motions or
protests should be filed on or before , 1998. Protests will be
considered by the Commission in determining the appropriate action to be
taken, but will not serve to make protestants parties to this
proceeding. Any person wishing to become a party must file a motion to
intervene. Copies of this filing are on file with the Commission and are
available for public inspection.

Lois D. Cashell

Secretary

[CERTIFICATE OF SERVICE]{.underline}

I hereby certify that I have served the foregoing United States
Department of Energy, Western Area Power Administration (Western)
Petition for a Declaratory Order Approving Transmission Terms and
Conditions, and Petition for an Exemption From Filing Fees upon each
person designated on the official service list compiled by the Secretary
in this proceeding.

Dated at Golden, Colorado, on December , 1997.

M. Susan Earley

Attorney for the Western Area

Power Administration

1627 Cole Blvd.

Golden, Colorado 80401-3398

\(303\) 275-1806