**ATTACHMENT K**

**Authorities And Obligations**

Western Area Power Administration (Western) was established on
December 21, 1977, pursuant to Section 302 of the Department of Energy
(DOE) Organization Act, Public Law 95-91, dated August 4, 1977. By law,
the Bureau of Reclamation provides Federal power resources to its
project use customers. By law, Western markets Federal power resources
to its electric service customers. Western's transmission system was
built primarily to enable the delivery of Federal power to satisfy these
contractual obligations.

Western is not a public utility under Sections 205 and 206 of the
Federal Power Act and is not specifically subject to the requirements of
the Commission's Final Order Nos. 888 and 888-A. Western is a
transmitting utility subject to Section 211 of the Federal Power Act as
amended by the Energy Policy Act of 1992. The Department of Energy has
issued a Power Marketing Administration Open Access Transmission Policy
that supports the intent of the Commission's Notice of Proposed
Rulemaking for Open Access Transmission.

Use of transmission facilities that Western owns, operates, or to which
it has contract rights for delivery of Federal long-term firm capacity
and energy to project use and electric service customers is a Western
responsibility under the terms and conditions of marketing criteria and
electric service contracts implementing statutory obligations to market
Federal power. This is complementary with the provisions of the Tariff.
Transmission service provided by Western under the Tariff is solely for
the use of available transmission capability in excess of the capability
Western requires for the delivery of long‑term firm capacity and energy
to project use and electric service customers of the Federal government.
Western will offer to provide others transmission service equivalent to
the service Western provides itself.

Western's Regional Offices' reserved transmission capacity shall
therefore include capacity sufficient to deliver Federal power resources
to customers of the Federal government. Nothing in this Tariff shall
alter, amend or abridge the statutory or contractual obligations of
Western to market and deliver Federal power resources and to repay the
Federal investment in such projects. The Tariff provides for
transmission, including each Regional Office\'s use of those facilities
for Third Party Sales, on the unused capability of transmission
facilities under the jurisdiction or control of each of Western's
Regional Offices not required for the delivery of long-term firm
capacity and energy to customers of the Federal government in a manner
consistent with the spirit and intent of The Commission's Order Nos. 888
and 888-A.

Western has prepared this Tariff and Service Agreements to provide
transmission service comparable to that required of public utilities by
The Commission's Order Nos. 888 and 888-A, and to implement those Orders
consistent with the DOE Policy. An entity desiring transmission service
from Western must comply with the application procedures outlined
herein. The review and approval requirements detailed herein will apply
to all requesting parties. Western will perform the necessary studies or
assessments for evaluating requests for transmission service as set
forth in the Tariff. Any facility construction or interconnection
necessary to provide transmission service will be subject to Western's
General Requirements for Interconnection which are available upon
request.

Western will provide Firm and Non‑Firm Point‑to‑Point Transmission
Service and Network Integration Transmission Service under this Tariff.
The specific terms and conditions for providing transmission service to
a customer will be included in a Service Agreement. Operating
Procedures, Available Transmission Capability (ATC), and System Impact
Methodology are defined in the Attachments. Western's rates are
developed under separate public processes pursuant to applicable Federal
law and regulations. Therefore, rates and charges for specific services
will be set forth in the appropriate Regional rate schedules attached to
each Service Agreement.

Western has marketed the maximum practical amount of power from each of
its projects, leaving little or no flexibility for provision of
additional power services. Changes in water conditions frequently affect
the ability of hydroelectric projects to meet obligations on a
short-term basis. The unique characteristics of the hydro resource,
Western's marketing plans and the limitations of the resource due to
changing water conditions limit Western's ability to provide
generation-related services including Ancillary Services and
redispatching using Federal hydro resources.

Western operates in 15 central and western states encompassing a
geographic area of 3.38 million-square-kilometers (1.3
million-square-miles). Western has four Customer Service Regional
Offices and the Colorado River Storage Project Customer Service Center,
each referred to in the Tariff as Regional Office. The addresses for
submitting applications to Western's Regional Offices are as follows:
Colorado River Storage Project, CRSP Manager, P.O. Box 11606, Salt Lake
City, UT, 84147-0606, telephone number (801) 524-6372; Desert Southwest
Region, Power Marketing Manager, P.O. Box 6457, Phoenix, AZ, 95005-6457,
telephone number (602) 352-2789; Rocky Mountain Region, Power Marketing
Manager, P.O. Box 3700, Loveland, CO, 80539-3003, telephone number (970)
490-7370; Sierra Nevada Region, Power Marketing Manager, 114 Parkshore
Drive, Folsom, CA, 95630-4710, telephone number (916) 353-4421; Upper
Great Plains Region, Power Marketing Manager, P.O. Box 35800, Billings,
MT, 59107-5800, telephone number (406) 247-7394.

***Colorado River Storage Project Customer Service Center***

The Colorado River Storage Project Customer Service Center (CRSP CSC),
located in Salt Lake City, Utah, markets power from three Federal
multipurpose water development projects; the Colorado River Storage
Project (CRSP), the Collbran Project, and the Rio Grande Project,
collectively called the Integrated Projects. The hydroelectric
facilities associated with these projects include: Flaming Gorge and
Fontenelle powerplants on the Green River; Blue Mesa, Morrow Point, and
Crystal powerplants on the Gunnison River; Upper and Lower Molina
powerplants of the Collbran Project in Western Colorado; the largest of
the CRSP facilities, Glen Canyon powerplant on the Colorado River; and
Elephant Butte powerplant, part of the Rio Grande Project on the Rio
Grande River in South Central New Mexico. The CRSP transmission system
consists of high-voltage transmission lines and attendant facilities
extending from Arizona, into New Mexico, through Colorado, and into
portions of Utah and Wyoming. The CRSP CSC uses the CRSP transmission
system to meet its commitments to its Federal customers, point-to-point
transmission customers, and exchange power contractors. The CRSP CSC
must, therefore, reserve sufficient transmission capacity to meet these
long-term obligations. The CRSP CSC also needs to reserve capacity in
its transmission system to enable it to deliver power produced by the
Integrated Projects hydroelectric powerplants during periods when flood
control water releases produce greater than normal generation levels.

The CRSP CSC office, located in Salt Lake City, is a member of the
Western Regional Transmission Association (WRTA) and Southwest Regional
Transmission Association (SWRTA) and operates within the Western Systems
Coordinating Council (WSCC).

The CRSP CSC does not operate a Control Area and as such may be unable
to provide some or all of the services under the Tariff from its
Integrated Projects hydroelectric resources, including, but not limited
to, ancillary services and Network Integration Transmission Service.

The CRSP CSC application processing fee will be \$1,600.

***Desert Southwest Region***

The Desert Southwest Region (DSR) manages transmission facilities in the
states of Arizona, California, and Nevada. The DSR transmission
facilities are interconnected with transmission facilities of several
non‑Federal entities. DSR is a member of the SWRTA and the WRTA and its
system is operated in the WSCC. For the purpose of implementing this
Tariff the transmission facilities of the Parker‑Davis Projects and the
Pacific Northwest-Pacific Southwest Intertie Project (Pacific AC
Intertie) will be utilized. DSR manages a control area operations center
through its Desert Southwest Regional Office located in Phoenix,
Arizona.

The DSR application processing fee will be \$1,700.

***Rocky Mountain Region***

The Rocky Mountain Region (RMR) manages transmission facilities in the
states of Colorado, Wyoming, Nebraska, and Kansas which were constructed
for the primary purpose of marketing power from the Pick-Sloan Missouri
Basin Program - Western Division. The RMR office and Control Area
operations center is located in Loveland, Colorado. The RMR is a member
of the WRTA and its system is operated in the WSCC.

For RMR, the rates for Point-to-Point and Network Integration
Transmission Service charged pursuant to the Tariff will be calculated
using the costs of the transmission facilities of the Pick-Sloan
Missouri Basin Program - Western Division. The rates for the Ancillary
Services will be calculated using the costs of the generation facilities
of the Pick-Sloan Missouri Basin Program - Western Division and the
Fryingpan - Arkansas Project.

The RMR application processing fee will be \$1,600.

***Sierra Nevada Region***

The Sierra Nevada Customer Service Region (SNR), located in Folsom,
California, manages the Central Valley Project (CVP) transmission
facilities in the State of 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 SNR's 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. SNR is a member of
the WRTA Regional Transmission Group and operates within the WSCC
reliability council.

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.

The SNR application processing fee will be \$1,300.

***Upper Great Plains Region***

The Upper Great Plains Region (UGPR) manages transmission facilities in
the states of Montana, North Dakota, South Dakota, Nebraska, Minnesota,
and Iowa which were constructed for the primary purpose of marketing
power from the Pick-Sloan Missouri Basin Program - Eastern Division. 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 MAPP reliability council. The
western portion of the system is operated in the WSCC.

The UGPR transmission facilities are integrated with the transmission
facilities of Basin Electric Power Cooperative (Basin) and Heartland
Consumers Power District (Heartland) such that transmission services are
provided over an integrated transmission system. UGPR rates for
Point-to-Point and Network Integration Transmission Service charged
pursuant to the Tariff will be calculated using the costs of the
transmission facilities of UGPR, Basin, and Heartland that are included
in the Transmission System. This Transmission System is also called the
Integrated System (IS) and the rates are identified as IS Rates. The
integration of these facilities as the IS and the use of the IS rates
have been approved by the Administrator of Western. The definition of
the Transmission System and the rates for Point-To-Point and Network
Integration Transmission Service may be subject to change upon
conclusion of an Open Access Transmission Service rate development
process conducted pursuant to applicable Federal Law and regulations.

Both Basin and Heartland also own generating facilities and must commit
to deliver the output of those resources to their respective members.
Basin and Heartland will therefore reserve sufficient capacity in their
transmission facilities to deliver that output.

Any Transmission Customer taking service under this Tariff shall be
subject to a Stranded Cost Charge payable to either UGPR, Basin or
Heartland if such service is used for the transmission of power or
energy that replaces wholly or in part, power or energy supplied by
Western, Basin or Heartland, respectively.

The Stranded Cost Charge of Basin shall be applicable regardless of
whether the transmission relates to power and/or energy that is
purchased by or on behalf of a Generation and Transmission Cooperative
member of Basin (G&T), a Distribution Cooperative member of Basin or
G&T, or a retail customer of a Distribution Cooperative member of Basin
or a G&T.

The Stranded Cost Charge of Heartland shall be applicable whether the
transmission service relates to power and/or energy that is purchased by
or on behalf of a municipal customer of Heartland or a retail customer
of a municipal customer of Heartland.

Stranded costs will be recovered only from a Transmission Customer who
obtains transmission service under access rights granted through the
Transmission Provider's compliance tariff developed pursuant to The
Commission's Final Order Nos. 888 and 888-A and causes either UGPR,
Basin or Heartland to incur stranded costs. Stranded costs will be
recovered through the terms and conditions of a separate contract
entered into either by UGPR and the Transmission Customer or Basin and
the Transmission Customer or Heartland and the Transmission Customer.

The UGPR application processing fee will be \$1,700.