# Presentation: 278844

## Parker-Davis ProjectPost-2008 Re-marketing

- Application of Energy Planning and Management Program Power Marketing Initiative
- Public Information Forum

## "We market and deliver reliable, cost-based hydroelectric power and related services”

-- Strategic Plan

*-- Strategic Plan*

**What is Western?**

## Service Area

-  15 Western States
-  17,000 miles of transmission lines
-  Over 250 substations
-  40 billion kilowatt-hours of energy each year
-  About 600 customers

**Western’s Regions**

**Desert Southwest Region**

- About 2,500 megawatts allocated to
-    customers
-  3,100 miles of transmission lines
-  More than 70 customers

**DSW Projects**

-  Power and transmission marketed on a
-      project-by-project basis
- Boulder Canyon Project
- Parker-Davis Project
- CRSP Southern Division
- Pacific NW/SW Intertie Project

**Parker-Davis Project**

-  283 MW of marketed capacity
-    including project use
-  26 Firm Electric Service Customers
-  Firm Electric Service contracts
-    expire September 30, 2008

## “The Program requires the preparation of integrated resource plans by Western’s customers and establishes a framework for extension of existing firm power resource commitments.”

Components of EPAMP (10 CFR 905)
Integrated Resource Planning
Power Marketing Initiative

- Components of EPAMP (10 CFR 905)
- Integrated Resource Planning
- Power Marketing Initiative

**Energy Planning****and Management Program **

- Extend Major Portion of Resource     Entitlement
- Establish Resource Pool
- Used for New Customers

**Power Marketing Initiative**

- Pick-Sloan Missouri Basin Program - Eastern Division
- Loveland Area Projects
- Central Valley Project
- Salt Lake City Area/Integrated Projects

**Western Marketing Efforts**

**Applicability of PMI**

-   Varies by Project
-    *The PMI originally applied only to the Pick-Sloan*
*    **Missouri Basin Program-Eastern Division and*
*    **the Loveland Area Projects*
*    **(EPAMP FRN, October 1995)*

- Pick-Sloan Missouri Basin Program-Eastern
-         Division and Loveland Area Projects
- Extended 20 Years
- 96 Percent Extended
- Two additions to resource pool of up to 1% each of marketable resources

**Western Marketing Efforts**

- Central Valley Project
- Extended 20 Years
- 96 Percent Extended
- One addition to resource pool of up to 2% of marketable resources

**Western Marketing Efforts**

- Salt Lake City Area/Integrated Projects
-         (Colorado River Storage Project)
- Extended 20 Years
- 93 Percent Extended
- No additions to resource pool

**Western Marketing Efforts**

## PMI Application to Parker-Davis

- “Western will evaluate application of this PMI to other Western firm power contracts that expire after January 1, 2005---principally the Parker-Davis and Boulder Canyon Projects.”
- “This evaluation will be published after a separate public process and will take place no more than 10 years before termination of these contracts.”

- Parker-Davis Project proposal
-   (proposed in 67 FRN 51580, dated 8/8/02)
- Extend 94 Percent of Marketable Resource
- 20 Years From October 1, 2008
- 6% Resource Pool for New Customers
- No Additional Incremental Resource Pools

**Parker-Davis Project FRN**

- Proposal for 6% Resource Pool
- Consistent with Total Resource Pool Percentages of other Western Projects
- Consistent with PMI to Extend a “Major Portion” of Power Under Contract
- Consistent with PMI to Reserve a “Modest Percentage” of Resources for Pool

**Parker-Davis Project FRN**

- Contracts will be extended under the Current Marketing Plan:
- General Consolidated Power Marketing Criteria (48 FR 20872)
- Conformed General Consolidated Power Marketing Criteria (49 FR 50582)
- Proposed Allocation Criteria and Allocations (52 FR 7014)
- Final Allocation Criteria and Allocations 		(52 FR 28333)

**Parker-Davis Project**

- Marketing Plan under the PMI
- Power Marketing Initiative
- Eligibility and Allocation Criteria
- Resource Definition
- Size of the Resource Pool

**Parker-Davis Project**

- P-DP Marketing Plan
- P-DP Marketing Area
- Preference Customer Criteria
- Current Bundled Product

**Parker-Davis Project**

## P-DP Marketing Area

- Preference Customer
-        (per Reclamation Project Act of 1939)
- Municipality
- Cooperative
- Public Power District
- Public Utility District
- Government Entities
- Native American Tribes

- Parker-Davis Project Firm Power
- Firm Electric Service for capacity and energy
- Including Transmission and Ancillary Services
- Withdrawable and Non-Withdrawable Power

**Parker-Davis Project**

- Withdrawable
- 		Summer Capacity =  16,030 kW
- 		Winter Capacity    =     9,460 kW
- Non-withdrawable
- 		Summer Capacity =  226,485 kW
- 		Winter Capacity    =  176,070 kW
- (Figures exclude Project Use Power)

**Firm Electric Service (Capacity)**

- Withdrawable
- 		Summer Energy =  55,159,230 kWh
- 		Winter Energy    =  16,110,380 kWh
- Non-withdrawable
- 		Summer Energy  =  779,586,653 kWh
- 		Winter Energy     =  299,678,271 kWh
- (Figures exclude Project Use Power)

**Firm Electric Service (Energy)**

- Parker-Davis Project Capacity (kilowatts)
- 283,015 kW     Available
- _- 40,500_ kW     Project Use
- 242,515 kW     Available for Allocation & Sale
- _x      .94_           Extension Factor
- 227,964 kW   Available for Extension
- 					to Existing Customers

**Capacity Available for Extension**

- Parker-Davis Project Capacity (kilowatts)
- 283,015 kW     Available
- _- 40,500_ kW     Project Use
- 242,515 kW     Available for Allocation & Sale
- _x      .06_           Resource Pool Factor
- 14,551 kW  Available for Resource Pool

**Capacity Available for Resource Pool**

- Total Marketable Parker-Davis Project Energy by season (exclusive of Project Use)
- 	Summer	834,745,883 kWh
- 	Winter		315,788,651 kWh

**Parker-Davis Project Energy**

- Seasonal Parker-Davis Project Energy (kWh)
- Summer		834,745,883 kWh
- 				       _x      .94_  Extension Factor
- 				784,661,130 kWh  To Be Extended
- Winter	         315,788,651  kWh
- _	__	__	_	       _x      .94_  Extension Factor
- 				296,841,331  kWh To Be Extended

**Energy Available for Extension**

- Seasonal Parker-Davis Project Energy (kWh)
- Summer		834,745,883 kWh
- 				        _x     .06           _
- 				  50,084,753 kWh  Resource Pool
- Winter	         315,788,651 kWh
- _	__	__	_	       _x      .06_
- 				  18,947,319  kWh  Resource Pool

**Energy Available for Resource Pool**

- Utility Status
- Ready, Willing, and Able to Take Power
- Distribution System
- Responsible for Load Growth
- Must Sign Long-Term Contract
- Must Comply With IRP Provision

**Eligible Preference Customers**

- Sign Long-term Firm Electric Service Contracts in Spring of 2004

**Existing Customers**

- Public Comment Forums:
- Las Vegas, Nevada --- October 8, 2002
- Phoenix, Arizona     --- October 9, 2002
- Ontario, California   --- October 10, 2002

- Public Comment Forums
- Submit Written Comments to Western
- Applicability of the PMI to Parker-Davis
- Resource Extension Percentage
- Size of the Resource Pool
- Comment Period Ends November 6
- Western Evaluates Comments
- Western Publishes Final Decision FRN

**Next Steps in this Public Process**

- Submit written comments to:
*   *
*   **Mr. J. Tyler Carlson*
*   **Western Area Power Administration*
*   **P.O. Box 6457*
*   **Phoenix, AZ 85005-6457*
*   *
*   **or Fax: (602) 352-2490*
*   **or Email: Post2008PDP@wapa.gov*
*   *

- Marketing Plan Criteria:
- Define Eligibility Criteria
- Define Allocation Criteria
- Define General Contract Principles
- Allocations
- Determine Successful Applicants
- Determine Resources to be Allocated

**Future Public Process Decisions**

- Visit our website at:
*   *http://www.wapa.gov/dsw/pwrmkt
*Power Marketing Initiative - Subpart C*
*Parker-Davis Project Marketing Area Map*
*Federal Register Notice (dated 8/8/02)*
*Current Marketing Plan*