# Presentation: 528520

## Parker-Davis Project Post-2008 Resource Pool

- Proposed Allocations
- Public Information Forum

**Notes:**
Good afternoon and welcome to the Western Area Power Administration’s Parker-Davis Project Post-2008 Public Information Forum.  My name is Brian Young and I’m the Remarketing Manager for Western’s Desert Southwest Regional Office and project manager for this effort.  With me today is Jean Gray, the Assistant Regional Manager for Power Marketing and Penny Casey, Chief of the Power Marketing Resources Division.

## Purpose

- Parker-Davis Project Marketing Plan
- What is the P-DP Marketing Plan?
- P-DP Marketing Plan Elements
- Proposed Allocations
- FRN (71 FR 40503) Issued July 17, 2006
- Allocation Methodology
- Next Steps
- Contacts

**Notes:**
Today we will first present some background information leading up to the allocation process including the Parker-Davis Project Marketing Plan and previous decisions and federal register notices.  Following this we’ll present the proposed allocations, published in the Federal Register Notice on July 17, 2006 and discuss the methodology used in making the proposed allocations.  Finally, we look at the next steps and provide some contact information.  As Doug said earlier, we’re seeking comments on these proposed allocation which are due to Western by September 15, 2006.

## Parker-Davis Project
Marketing Plan
Post-2008 Resource Pool

- Marketing Plan
- Post-2008 Resource Pool

**Notes:**
We will start with background information regarding the allocation process including the Parker-Davis Project Marketing Plan and previous decisions and federal register notices.

- The P-DP Marketing Plan for the Post-2008 Resource Pool Allocations consists of the 1987 Marketing Plan, EPAMP, and specific changes to the 1987 Marketing Plan adopted in the Federal Register Notices published during the P-DP Post-2008 Marketing process.
- The P-DP Marketing Plan specifies the product marketed, eligibility criteria, allocation criteria and contract principles.
- The P-DP Marketing Plan is the basis for allocating power from the Resource Pool

**What is the P-DP Marketing Plan?**

**Notes:**
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- 1987 Marketing Plan Is Defined By:
- Conformed General Consolidated Power Marketing Criteria (49 FR 50582, dated December 28, 1984)
- Proposed Allocation Criteria and Allocations (52 FR 7014, dated March 6, 1987)
- Final Allocation Criteria and Allocations (52 FR 28333, dated July 29, 1987)

**1987 P-DP Marketing Plan**

**Notes:**
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These three documents can be viewed at Western’s external website and I’ll have this website address for you on a later slide.

**Prior Parker-Davis Project ****  Post-2008 Marketing Decisions**

- Application of EPAMP PMI & extension of existing contracts (68 FR 23709)
- Creation of Resource Pool (68 FR 23709)
- Proposed procedures and call for applications (69 FR 58900)
- Final allocation procedures (70 FR 74805)

**Notes:**
The other part of the basis for allocations are the prior post-2008 marketing decision. They include....(read slide).

## Application of EPAMP and Extension of Existing Contracts

*Federal Register* notice published May 5, 2003, announced final decision to apply the EPAMP PMI to the P-DP (68 FR 23709).
- The 1987 Marketing Plan is retained by application of EPAMP PMI except as it has been expressly modified.
- The major portion of the existing contracts were extended for a 20-year period through September 30, 2028.

**Notes:**
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## Creation of Resource Pool

*Federal Register* notice published May 5, 2003, announced final decision to use 7% of the marketable resource for creation of a Resource Pool (68 FR 23709)
- Resulted in a Resource Pool of approximately 17 MW summer season capacity and 13 MW winter season capacity, for allocation to eligible preference contractors for 20 years beginning October 1, 2008.

**Notes:**
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## Proposed Procedures and Call For Applications

*Federal Register* notice published October 1, 2004,  (69 FR 58900) proposed procedures for allocating power from the Resource Pool and called for applications for allocations of power from the Resource Pool to be submitted on or before December 30, 2004.
- The period for submitting applications was extended to January 30, 2005 by *Federal Register* notice published December 30, 2004 (69 FR 78408)

**Notes:**
The next step in the process was to publish proposed procedures and call for applications.   (Read slide)

## Final Allocation Procedures

*Federal Register* notice published December 16, 2005, (70 FR 74805) finalized procedures for allocating power from the Resource Pool.  These procedures included:
- Eligibility Criteria
- Allocation Criteria
- General Contract Principles

**Notes:**
Last, the final allocation procedures were published. (Read slide).  In the following slides I will review some of the more important elements in each of these sections particularly those that impact the allocations or that are additions to or modified from the current Marketing Plan.

- Power Marketed
- Marketing Area
- Eligibility Criteria
- Allocation Criteria
- General Contract Principles

**Elements of the P-DP Marketing Plan for Post-2008 Resource Pool Allocations**

**Notes:**
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- P-DP power that is surplus to the power reserved for the Unites States priority uses is marketed to federal preference entities.  Priority uses are Reclamation Project Use and Indian irrigation pumping adjacent to the Lower Colorado River.
- P-DP power is a bundled firm electric service product, including firm capacity, energy, and transmission (on P-DP system) service.

**Power Marketed**

**Notes:**
The Plan also defines the product that is marketed.  

- A Resource Pool of 17 MW of summer capacity and 13 MW of winter capacity was created.  This includes 0.869 MW of summer withdrawable capacity and 0.619 MW of winter withdrawable capacity.
- There are summer season and winter season capacities with a maximum energy available to the contractor of 3,441 kWh/kW of summer capacity and 1,703 kWh/kW of winter capacity.

**Power Marketed (cont.)**

**Notes:**
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## P-DP Marketing Area

**Notes:**
Part of the Marketing Plan is defining the Marketing Area.  The Parker-Davis Project marketing area consists generally of southern California, southern Nevada, most of Arizona, and a small portion of western New Mexico.  This map can be referenced in the General Consolidated Power Marketing Criteria, published on May 9, 1983, and is also available for viewing on the Desert Southwest Region external website.

## Eligibility Criteria

- First consideration will be given to entities who do not have a power resource contract with Western or are not a member of a parent entity that has a contract with Western (_EPAMP_)
- Qualified applicants, except Native American tribes, must be _ready, willing, and able_ to receive and distribute _or use_ power from Western.

**Notes:**
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## Eligibility Criteria (Cont.)

- Qualified applicants (including cooperatives, public utility districts, public power districts and municipalities) that desire to purchase power from Western _for resale to consumers_ must have electrical utility status by April 1, 2006.
- For the P-DP, Western will consider making allocation to municipal utilities, other than electrical utilities, that are recognized as utilities by their applicable legal authorities, are nonprofit in nature, have electrical facilities, and are independently governed and financed.

**Notes:**
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## General Allocation Criteria

- Order of Priority for Allocations:
- 	1.  Preference entities in the P-DP marketing area that do not have a contract with Western for Federal power resources or are not a member of a parent entity that has a contract with Western for Federal power resources.
- 	2.  Preference entities in the P-DP marketing area that have a contract with Western for Federal power resources or are a member of a parent entity that has a contract with Western for Federal power resources.
- 	3. Preference entities in adjacent Federal marketing areas that do not have a contract with Western for Federal power resources or are not a member of a parent entity that has a contract with Western for Federal power resources.

## General Allocation Criteria (Cont.)

- Minimum Allocation is 1 MW.
- Applicants seeking allocations as aggregated group must have satisfactory contractual arrangement by April 1, 2006.
- Each member of aggregated group must meet preference and eligibility requirements.

**Notes:**
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## General Contract Principles

- Western may reduce withdrawable power for priority use upon 2-year notice.
- Applicants are responsible for third-party delivery arrangements.
- No sale for resale of power allocations.
- Incorporation of Western’s General Power Contract Provisions.
- Western will enter into a single contract with aggregated groups with the aggregated entity as the contracting Party.

## General Contract Principles (cont.)

- Western may adjust CROD upon 5 year notice due to changes in hydrology or operations (EPAMP).
- Contractors are required to pay for service 1 month in advance for firm electric service.
- Repayment of undepreciated replacement advances to the existing contractors which have reduced allocations.

## Proposed
Allocations

- Allocations

## Proposed Allocations

- Western received 79 applications for the Resource Pool.  34 applications were from entities in the first priority of consideration.
- The Post-2008 Resource Pool proposed allocations published in the F*ederal Register* July 17, 2006 (71 FR 40503).
- The proposed allocations include 12 allocations to entities in the first priority of consideration and one allocation for irrigation pumping on Indian lands adjacent to the Colorado River.

**Notes:**
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## Proposed Allocations

- Factors considered in making the proposed allocation were:
-  Priority consideration for Indian irrigation pumping on certain Indian lands adjacent to the Colorado River in the lower basin
-  Widespread use of Federal resources
-  Magnitude of direct or indirect benefits from Federal resources
-  Load.

**Notes:**
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## Proposed Allocations Table

**Notes:**
This is the proposed allocation table from the FRN with the 13 proposed allocations

- Resource Pool Capacity:
- Total Summer Capacity           	=   17,000 kW
- 	  Withdrawable Capacity          	=        869 kW
- 	  Non-Withdrawable Capacity  =   16,131 kW
- Total Winter Capacity           	=   13,000 kW
- 	  Withdrawable Capacity          	=        619 kW
- 	  Non-Withdrawable Capacity  =   12,381 kW

**Allocation Methodology**

**Notes:**
Next we will discuss the methodology used in making the allocations. The resource pool capacities of 17 MW of summer capacity and 13 MW of winter capacity are shown.  Also note that the pool included just over 16 MW of non-withdrawable summer capacity and just of 12 MW of non-withdrawable winter capacity which are important numbers as you will see in the following slides.

***Step 1: Make Allocation for Indian Irrigation Pumping***

**Notes:**
The first step is to make an allocation of 2 MW of non-withdrawable summer capacity for Indian irrigation pumping which is a priority use as discussed earlier.

***Step 2: Make****** ******Maximum Number of 1 MW Allocations of Non-Withdrawable Capacity***

**Notes:**
Second the maximum number of 1 MW summer and winter allocations were made (12).  This is limited by the total resource pool non-withdrawable winter capacity of just over 12 MW.  This step ensures that all allocations will remain at or above the Marketing Plan minimum allocation of 1 MW.

The remaining capacity after Step 2 consists of 3 MW of summer capacity including less than 1 MW of withdrawable capacity and 1 MW of winter capacity comprised mostly of withdrawable capacity.

***Step 3: Allocate Additional 1 MW (Summer & Winter) With Withdrawable Capacity To Allottee With Largest Load***

**Notes:**
In Step 3 an additional 1 MW of summer and winter capacity was allocated to the allottee with the largest load (NAVFAC SW) including the withdrawable capacity from the resource pool.

The resource pool remaining consists of 2 MW of non-wthdrawable summer capacity.

***Step 4: Allocate Additional 1 MW Summer Capacity Each to Two Allottees With Next Largest Loads***

**Notes:**
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## Next Steps
And
Contacts

- And
- Contacts

- Forum Dates & Location:
- _Phoenix, AZ_
- 	September 12, 2006, 1:00 PM MST
- 	at Western’s Desert Southwest Office
- _Ontario, CA_
- 	September 14, 2006, 1:00 PM PDT
- 	at Doubletree Hotel Ontario Airport

***Public Comment Forums***

**Notes:**
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- Public Comment Forums
- Submit Written Comments to Western Through September 15, 2006
- Western Evaluates Comments
- Western Publishes Final Allocations FRN December 2006
- Begin Contract Development

**Next Steps**

**Notes:**
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- Submit written comments to:
*        **Mr. J. Tyler Carlson*
*        **Western Area Power Administration*
*        **P.O. Box 6457*
*        **Phoenix, AZ 85005-6457*
*       **or Fax: (602) 605-2490*
*       **or Email: Post2008PDP@wapa.gov*
*   *

***Parker-Davis Project***

**Notes:**
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- Visit our website at:
*   *http://www.wapa.gov/dsw/pwrmkt
*EPAMP Final Rule (Power Marketing Initiative)*
*Parker-Davis Project Marketing Area Map*
*Current Marketing Plan*
*Federal Register Notices*
*Comments*
- Contact* *Brian Young at 602-605-2594

***Additional Information***

**Notes:**
This concludes our presentation today.  For more information, please visit our website.  To recap, the following documents can be viewed at the Desert Southwest Region’s external website at www.wapa.gov/dsw/pwrmkt:

If you don’t have access to the Internet, please call me at (602) 605-2594 and we’ll mail you a copy of any of these documents.  Or call us if  you need any assistance.  Thank for attending this presentation.  Please make sure you’ve signed in.  Are there any questions?