Federal Register / Vol. 65, No. 54 / Monday, March 20, 2000 / Rules and Regulations 14785

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1710

RIN 0572–AB05

Load Forecasts

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

SUMMARY: The Rural Utilities Service

(RUS) is amending its regulations to

revise requirements for borrower load

forecasts and load forecast work plans

(historically referred to as power

requirements studies and power

requirements study work plans). These

changes reduce the level of detail

required in load forecasts filed by small

power supply borrowers and their

members and by distribution borrowers

unaffiliated with a large power supply

borrower. These changes also give

borrowers greater flexibility in

preparation of load forecasts required to

be submitted to RUS.

EFFECTIVE DATE: April 19, 2000.

FOR FURTHER INFORMATION CONTACT:

Georg A. Shultz, Chief, Energy

Forecasting Branch, Electric Staff

Division, Rural Utilities Service, U.S.

Department of Agriculture, 1400

Independence Ave., SW., Room 1246–

SBldg., STOP 1569, Washington, DC

20250–1569, telephone number: (202)

720–1920, fax: (202) 720–7491, E-mail:

gshultz@rus.usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

not significant for purposes of Executive

Order 12866 and, therefore, has not

been reviewed by Office of Management

and Budget (OMB).

Executive Order 12372

This rule is excluded from the scope

of Executive Order 12372,

Intergovernmental Consultation, which

may require consultation with State,

and tribal governments or the private

sector. See the final rule related notice

entitled ‘‘Department Programs and

Activities Excluded from Executive

Order 12372,’’ (50 FR 47034).

Executive Order 12988

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. RUS has determined that this

rule meets the applicable standards

provided in section 3 of the Executive

Order. In accordance with the Executive

Order and the rule: (1) All State and

local laws and regulations that are in

conflict with this rule will be

preempted; (2) No retroactive effect will

be given to this rule; and, (3) In

accordance with § 212(e) of the

Department of Agriculture

Reorganization Act of 1994 (7 U.S.C.

6912(e)), administrative appeal

procedures, if any are required, must be

exhausted prior to initiating litigation

against the Department or its agencies.

Regulatory Flexibility Act Certification

The Administrator of RUS has

determined that a rule relating to RUS’

electric loan program is not a rule as

defined in the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.) and, therefore, the

Regulatory Flexibility Act does not

apply to this rule. RUS borrowers, as a

result of obtaining Federal financing,

receive economic benefits that exceed

any direct economic costs associated

with complying with RUS regulations

and requirements.

Information Collection and

Recordkeeping Requirements

The Office of Management and Budget

has approved the reporting and

recordkeeping requirements contained

in this rule under the Paperwork

Reduction Act of 1993 (44. U.S.C.

chapter 35) and assigned control

number 0572–0032.

National Environmental Policy Act

Certification

The Administrator of RUS has

determined that this rule will not

significantly affect the quality of the

human environment as defined by the

National Environmental Policy Act of

1969 (42 U.S.C. 4321 et seq.) Therefore,

this action does not require an

environmental impact statement or

assessment.

Catalog of Federal Domestic Assistance

The program described by this rule is

listed in the Catalog of Federal Domestic

Assistance Programs under No. 10.850,

Rural Electrification Loans and Loan

Guarantees. This catalog is available on

a subscription basis from the

Superintendent of Documents, U.S.

Government Printing Office,

Washington, DC 20402–9325.

Telephone: (202) 512–1800.

Unfunded Mandates

This final rule contains no Federal

mandates (under the regulatory

provision of title II of the Unfunded

Mandates Reform Act of 1995) for State,

local, and tribal governments or the

private sector. Thus, this rule is not

subject to the requirements of section

202 and 205 of the Unfunded Mandates

Reform Act of 1995.

Background

The Rural Utilities Service (RUS)

makes and guarantees loans to furnish

and improve electric service in rural

areas pursuant to the Rural

Electrification Act of 1936. (7 U.S.C. 901

et seq.) (RE Act). Under the RE Act, RUS

may make or guarantee a loan only if the

Administrator determines that the

security for the loan is reasonably

adequate and that the loan will be

repaid within the time agreed. Most

borrowers apply for a new loan to meet

system needs every two to three years.

The security for these loans is generally

a first lien on the borrower’s electric

system, evidenced through the filing of

a mortgage. In order to determine the

feasibility of a new loan and whether

borrowers will have sufficient revenues

to repay existing loans, RUS requires

most borrowers to file load forecasts,

historically called ‘‘power requirements

studies’’ by RUS, containing current and

detailed information and analyses on

existing and expected future loads.

Detailed information from the load

forecasts are used in RUS’ independent

analysis and oversight of borrower

systems.

RUS regulations on the preparation

and approval of power requirements

studies and power requirements work

plans, contained at 7 CFR part 1710,

subpart E, were last revised in 1992, at

57 FR 1053 and 57 FR 4513. Since then,

the business and regulatory

environment in the electric industry has

undergone rapid change. State

regulatory agencies, power supply

systems, power pools, and other entities

are modifying their power planning

processes and requirements in the light

of competitive changes in the industry.

Even greater transformations lie ahead

as many states move to adopt retail

competition. In the years since the

existing regulations were adopted, both

RUS and our borrowers have gained

greater familiarity with the development

and use of load forecasts, and

supporting analyses and data and the

experience and sophistication of RUS

financed systems have increased.

In response to changes in the industry

and the Administration’s ongoing

commitment to improving customer

service, RUS has amended a number of

its regulations and practices involving

its oversight of borrower systems to

update and streamline these

requirements. This regulation is part of

RUS’ continuing effort to improve

customer service.

This final rule implements

recommendations to modify load

forecast requirements which arose out of

the RUS strategic planning process.

14786 Federal Register / Vol. 65, No. 54 / Monday, March 20, 2000 / Rules and Regulations

These changes simplify the procedure

and minimize the detail of information

RUS needs for loan feasibility

determinations. The revisions to the

existing rule balance RUS’ continuing

need to maintain current up-to-date load

forecast information for electric

borrowers with its goal of reducing

regulatory requirements and burdens on

borrowers.

In the usual course of business, all

prudent utilities engage in a continuing

planning process incorporating

objective load forecasts in order to

provide reliable electric service for their

existing and future customers.

Borrowers submit their load forecasts

and load forecast work plans to RUS in

order to provide the necessary support

for RUS approval of loans and a basis

for RUS to monitor future borrower

performance for loan security purposes.

This rule modifies the existing

requirements and reduce the number of

borrower systems required to maintain

current load forecasts on file with RUS.

These changes allow borrowers greater

flexibility in preparation of the load

forecasts and supporting information

submitted to RUS and will reduce

burdens on both borrowers and the RUS

electric program.

Comments

RUS received comments from two

commenters to the proposed regulation

published in the Federal Register on

July 7, 1999, at 64 FR 36609. One

commenter maintained that it was

inappropriate for RUS to reduce its

oversight of rural electric borrowers. In

response to this comment RUS notes

that most distribution borrowers and all

power supply borrowers are required by

the regulation to submit a separate and

current load forecast when requesting a

loan or loan guarantee. In addition,

borrowers requesting relatively small

loans must submit their load data and

supporting material as part of their

financial forecast. Because of the small

size of the loans relative to the

borrower’s total utility plant, RUS

believes that a detailed load forecast is

not needed to evaluate a borrower’s

request. Power supply borrowers are

required to submit a detailed load

forecast but are not required to

incorporate their member forecasts.

Large power supply borrowers must

provide a detailed forecast incorporating

their member forecasts. RUS believes

that this approach provides the agency

with adequate decision support for the

type and magnitude of the loans and

guarantees under consideration. No

changes in the proposed regulation are

required.

The second commenter was a power

supply borrower that had questions

regarding what type forecast was

necessary for members of a large power

supply borrower that are not RUS

borrowers. RUS believes that for a load

forecast to be valid it must address 100

percent of the borrowers anticipated

load. It is incumbent on the borrower to

determine what constitutes an

appropriate forecast. No changes in the

proposed regulation are required.

List of Subjects 7 CFR Part 1710

Electric power, Electric utilities loan

programs—energy, Reporting and

recordkeeping requirements, Rural

areas.

For the reasons set out in the

preamble, RUS amends 7 CFR chapter

XVII as follows:

PART 1710—GENERAL AND PRELOAN POLICIES AND PROCEDURES

COMMON TO INSURED AND

GUARANTEED ELECTRIC LOANS

1. The authority citation for part 1710

is revised to read as follows:

Authority: 7 U.S.C. et seq., 1921 et seq.,

and 6941 et seq.

2. Section 1710.2(a) is amended by

revising the definition of Power

requirements study (PRS) and by adding

the remaining definitions in

alphabetical order:

§ 1710.2 Definitions and rules of

construction.

* * * * *

Approved load forecast means a load

forecast that RUS has determined is

current for RUS purposes and has been

approved by RUS pursuant to 7 CFR

part 1710, subpart E.

Approved load forecast work plan

means a load forecast work plan that

RUS has determined is current for RUS’

purposes and has been approved

pursuant to 7 CFR part 1710, subpart E.

* * * * *

Load forecast means the thorough

study of a borrower’s electric loads and

the factors that affect those loads in

order to determine, as accurately as

practicable, the borrower’s future

requirements for energy and capacity.

Load forecast work plan means the

plan that contains the resources,

methods, schedules, and milestones to

be used in the preparation and

maintenance of a load forecast.

* * * * *

Power requirements study (PRS) has

the same meaning as load forecast.

* * * * *

PRS work plan has the same meaning

as load forecast work plan.

* * * * *

3. Revise § 1710.152(a) to read as

follows:

§ 1710.152 Primary Support Documents.

* * * * *

(a) Load forecast. The load forecast

provides the borrower and RUS with an

understanding of the borrower’s future

system loads, the factors influencing

those loads, and estimates of future

loads. The load forecast provides a basis

for projecting annual electricity (kWh)

sales and revenues, and for engineering

estimates of plant additions required to

provide reliable service to meet the

forecasted loads. Subpart E of this part

contains the information to be included

in a load forecast and when an approved

load forecast is required.

* * * * *

4. Revise subpart E of part 1710 to

read as follows:

Subpart E—Load Forecasts

Sec.

1710.200 Purpose.

1710.201 General.

1710.202 Requirement to prepare a load

forecast-power supply borrowers.

1710.203 Requirement to prepare a load

forecast-distribution borrowers.

1710.204 Filing requirements for borrowers

that must maintain a current RUS

approved load forecast on an ongoing

basis.

1710.205 Minimum requirements for all

borrower load forecasts.

1710.206 Requirements for load forecasts

prepared pursuant to RUS approved load

forecast work plans.

1710.207 RUS approval criteria for approval

of load forecasts by distribution

borrowers not required to maintain a

current load forecast on an ongoing

basis.

1710.208 RUS approval criteria for load

forecasts submitted by all power supply

borrowers and by distribution borrowers

required to maintain a current load

forecast on an ongoing basis.

1710.209 Requirements for load forecast

work plans.

1710.210 Waiver of requirements or

approval criteria.

1710.211–1710.249 [Reserved]

Subpart E—Load Forecasts

§ 1710.200 Purpose.

This subpart contains RUS policies

for the preparation, review, approval

and use of load forecasts and load

forecast work plans. A load forecast is

a thorough study of a borrower’s electric

loads and the factors that affect those

loads in order to estimate, as accurately

as practicable, the borrower’s future

requirements for energy and capacity.

The load forecast of a power supply

borrower includes and integrates the

load forecasts of its member systems. An

approved load forecast, if required by

Federal Register / Vol. 65, No. 54 / Monday, March 20, 2000 / Rules and Regulations 14787

this subpart, is one of the primary

documents that a borrower is required

to submit to support a loan application.

§ 1710.201 General.

(a) The policies, procedures and

requirements in this subpart are

intended to implement provisions of the

loan documents between RUS and the

electric borrowers and are also

necessary to support approval by RUS of

requests for financial assistance.

(b) Notwithstanding any other

provisions of this subpart, RUS may

require any power supply or

distribution borrower to prepare a new

or updated load forecast for RUS

approval or to maintain an approved

load forecast on an ongoing basis, if

such documentation is necessary for

RUS to determine loan feasibility, or to

ensure compliance under the loan

documents.

§ 1710.202 Requirement to prepare a load

forecast—power supply borrowers.

(a) A power supply borrower with a

total utility plant of $500 million or

more must maintain an approved load

forecast that meets the requirements of

this subpart on an ongoing basis and

provide an approved load forecast in

support of any request for RUS financial

assistance. The borrower must also

maintain an approved load forecast

work plan. The borrower’s approved

load forecast must be prepared pursuant

to the approved load forecast work plan.

(b) A power supply borrower that is

a member of another power supply

borrower that has a total utility plant of

$500 million or more must maintain an

approved load forecast that meets the

requirements of this subpart on an

ongoing basis and provide an approved

load forecast in support of any request

for RUS financial assistance. The

member power supply borrower may

comply with this requirement by

participation in and inclusion of its load

forecasting information in the approved

load forecast of its power supply

borrower. The approved load forecasts

must be prepared pursuant to the RUS

approved load forecast work plan.

(c) A power supply borrower that has

total utility plant of less than $500

million and that is not a member of

another power supply borrower with a

total utility plant of $500 million or

more must provide an approved load

forecast that meets the requirements of

this subpart in support of an application

for any RUS loan or loan guarantee

which exceeds $50 million. The

borrower is not required to maintain on

an ongoing basis either an approved

load forecast or an approved load

forecast work plan.

§ 1710.203 Requirement to prepare a load

forecast—distribution borrowers.

(a) A distribution borrower that is a

member of a power supply borrower

with a total utility plant of $500 million

or more must maintain an approved

load forecast that meets the

requirements of this subpart on an

ongoing basis and provide an approved

load forecast in support of any request

for RUS financial assistance. The

distribution borrower may comply with

this requirement by participation in and

inclusion of its load forecasting

information in the approved load

forecast of its power supply borrower.

The distribution borrower’s load

forecast must be prepared pursuant to

the approved load forecast work plan of

its power supply borrower.

(b) A distribution borrower that is a

member of a power supply borrower

which is itself a member of another

power supply borrower that has a total

utility plant of $500 million or more

must maintain an approved load

forecast that meets the requirements of

this subpart on an ongoing basis and

provide an approved load forecast in

support of any request for RUS financial

assistance. The distribution borrower

may comply with this requirement by

participation in and inclusion of its load

forecasting information in the approved

load forecast of its power supply

borrower. The distribution borrower’s

approved load forecast must be

prepared pursuant to the approved load

forecast work plan of the power supply

borrower with total utility plant in

excess of $500 million.

(c) A distribution borrower that is a

member of a power supply borrower

with a total utility plant of less than

$500 million must provide an approved

load forecast that meets the

requirements of this subpart in support

of an application for any RUS loan or

loan guarantee that exceeds $3 million

or 5 percent of total utility plant,

whichever is greater. The distribution

borrower may comply with this

requirement by participation in and

inclusion of its load forecasting

information in the approved load

forecast of its power supply borrower.

The borrower is not required to

maintain on an ongoing basis either an

approved load forecast or an approved

load forecast work plan.

(d) A distribution borrower with a

total utility plant of less than $500

million and that is unaffiliated with a

power supply borrower must provide an

approved load forecast that meets the

requirements of this subpart in support

of an application for any RUS loan or

loan guarantee which exceeds $3

million or 5 percent of total utility

plant, whichever is greater. The

borrower is not required to maintain on

an ongoing basis either an approved

load forecast or an approved load

forecast work plan.

(e) A distribution borrower with a

total utility plant of $500 million or

more must maintain an approved load

forecast that meets the requirements of

this subpart on an ongoing basis and

provide an approved load forecast in

support of any request for RUS

financing assistance. The borrower must

also maintain an approved load forecast

work plan. The distribution borrower

may comply with this requirement by

participation in and inclusion of its load

forecasting information in the approved

load forecast of its power supply

borrower.

§ 1710.204 Filing requirements for

borrowers that must maintain an approved

load forecast on an ongoing basis.

(a) Filing of load forecasts and

updates. A power supply or distribution

borrower required to maintain an

approved load forecast on an ongoing

basis under § 1710.202 or § 1710.203

may elect either of the following two

methods of compliance:

(1) Submitting a new load forecast to

RUS for review and approval at least

every 36 months, and then submitting

updates to the load forecast to RUS for

review and approval in each intervening

year; or

(2) Submitting a new load forecast to

RUS for review and approval not less

frequently than every 24 months.

(b) Extensions. RUS may extend any

time period required under this section

for up to 3 months at the written request

of the borrower’s general manager. A

request to extend a time period beyond

3 months must be accompanied by a

written request from the borrower’s

general manager, an amendment to the

borrower’s approved load forecast work

plan incorporating the extension, a

board resolution approving the

extension request and any amendment

to the approved load forecast work plan,

and any other relevant supporting

information. RUS may extend the time

periods contained in this section for up

to 24 months.

§ 1710.205 Minimum approval

requirements for all load forecasts.

(a) Documents required for RUS

approval of a borrower’s load forecast.

The borrower must provide the

following documents to obtain RUS

approval for a load forecast:

(1) The load forecast and supporting

documentation;

(2) A memorandum from the

borrower’s general manager to the board

14788 Federal Register / Vol. 65, No. 54 / Monday, March 20, 2000 / Rules and Regulations

of directors recommending that the

board approve the load forecast and its

uses; and

(3) A board resolution from the

borrower’s board of directors approving

the load forecast and its uses.

(b) Contents of Load Forecast. All

load forecasts submitted by borrowers

for approval must include:

(1) A narrative describing the

borrower’s system, service territory, and

consumers;

(2) A narrative description of the

borrower’s load forecast including

future load projections, forecast

assumptions, and the methods and

procedures used to develop the forecast;

(3) Projections of usage by consumer

class, number of consumers by class,

annual system peak demand, and season

of peak demand for the number of years

agreed upon by RUS and the borrower;

(4) A summary of the year-by-year

results of the load forecast in a format

that allows efficient transfer of the

information to other borrower planning

or loan support documents;

(5) The load impacts of a borrower’s

demand side management activities, if

applicable;

(6) Graphic representations of the

variables specifically identified by

management as influencing a borrower’s

loads; and

(7) A database that tracks all relevant

variables that might influence a

borrower’s loads.

(c) Formats. RUS does not require a

specific format for the narrative,

documentation, data, and other

information in the load forecast,

provided that all required information is

included and available. All data must be

in a tabular form that can be transferred

electronically to RUS computer software

applications. RUS will evaluate

borrower load forecasts for readability,

understanding, filing, and electronic

access. If a borrower’s load forecast is

submitted in a format that is not readily

usable by RUS or is incomplete, RUS

will require the borrower to submit the

load forecast in a format acceptable to

RUS.

(d) Document retention. The borrower

must retain its latest approved load

forecasts, and supporting

documentation until RUS approval of its

next load forecast. Any approved load

forecast work plan must be retained as

part of the approved load forecast.

(e) Consultation with RUS. The

borrower must designate and make

appropriate staff and consultants

available for consultation with RUS to

facilitate RUS review of the load

forecast work plan and the load forecast

when requested by RUS.

(f) Correlation and consistency with

other RUS loan support documents. If a

borrower relies on an approved load

forecast or an update of an approved

load forecast as loan support, the

borrower must demonstrate that the

approved load forecast and the other

primary support documentation for the

loan were reconciled. For example, both

the load forecast and the financial

forecast require input assumptions for

wholesale power costs, distribution

costs, other systems costs, average

revenue per kWh, and inflation. Also, a

borrower’s engineering planning

documents, such as the construction

work plan, incorporate consumer and

usage per consumer projections from the

load forecast to develop system design

criteria. The assumptions and data

common to all the documents must be

consistent.

(g) Coordination. Power supply

borrowers and their members that are

subject to the requirement to maintain

an approved load forecast on an ongoing

basis are required to coordinate

preparation of their respective load

forecasts, updates of load forecasts, and

approved load forecast work plan. A

load forecast of a power supply

borrower must consider the load

forecasts of all its member systems.

§ 1710.206 Approval requirements for load

forecasts prepared pursuant to approved

load forecast work plans.

(a) Contents of load forecasts

prepared under an approved load

forecast work plan. In addition to the

minimum requirements for load

forecasts under § 1710.205, load

forecasts developed and submitted by

borrowers required to have an approved

load forecast work plan shall include

the following:

(1) Scope of the load forecast. The

narrative shall address the overall

approach, time periods, and expected

internal and external uses of the

forecast. Examples of internal uses

include providing information for

developing or monitoring demand side

management programs, supply resource

planning, load flow studies, wholesale

power marketing, retail marketing, cost

of service studies, rate policy and

development, financial planning, and

evaluating the potential effects on

electric revenues caused by competition

from alternative energy sources or other

electric suppliers. Examples of external

uses include meeting state and Federal

regulatory requirements, obtaining

financial ratings, and participation in

reliability council, power pool, regional

transmission group, power supplier or

member system forecasting and

planning activities.

(2) Resources used to develop the load

forecast. The discussion shall identify

and discuss the borrower personnel,

consultants, data processing, methods

and other resources used in the

preparation of the load forecast. The

borrower shall identify the borrower’s

member and, as applicable, member

personnel that will serve as project

leaders or liaisons with the authority to

make decisions and commit resources

within the scope of the current and

future work plans.

(3) A comprehensive description of

the database used in the study. The

narrative shall describe the procedures

used to collect, develop, verify, validate,

update, and maintain the data. A data

dictionary thoroughly defining the

database shall be included. The

borrower shall make all or parts of the

database available or otherwise

accessible to RUS in electronic format,

if requested.

(4) A narrative for each new load

forecast or update of a load forecast

discussing the methods and procedures

used in the analysis and modeling of the

borrower’s electric system loads as

provided for in the load forecast work

plan.

(5) A narrative discussing the

borrower’s past, existing, and forecast of

future electric system loads. The

narrative must identify and explain

substantive assumptions and other

pertinent information used to support

the estimates presented in the load

forecast.

(6) A narrative discussing load

forecast uncertainty or alternative

futures that may determine the

borrower’s actual loads. Examples of

economic scenarios, weather conditions,

and other uncertainties that borrowers

may decide to address in their analysis

include:

(i) Most-probable assumptions, with

normal weather;

(ii) Pessimistic assumptions, with

normal weather;

(iii) Optimistic assumptions, with

normal weather;

(iv) Most-probable assumptions, with

severe weather;

(v) Most-probable assumptions, with

mild weather;

(vi) Impacts of wholesale or retail

competition; or

(vii) new environmental

requirements.

(7) A summary of the forecast’s results

on an annual basis. Include alternative

futures, as applicable. This summary

shall be designed to accommodate the

transfer of load forecast information to

a borrower’s other planning or loan

support documents. Computergenerated forms or electronic

Federal Register / Vol. 65, No. 54 / Monday, March 20, 2000 / Rules and Regulations 14789

submissions of data are acceptable.

Graphs, tables, spreadsheets or other

exhibits shall be included throughout

the forecast as appropriate.

(8) A narrative discussing the

coordination activities conducted

between a power supply borrower and

its members, as applicable, and between

the borrower and RUS.

(b) Compliance with an approved

load forecast work plan. A borrower

required to maintain an approved load

forecast work plan must also be able to

demonstrate that both it and its RUS

borrower members are in compliance

with its approved load forecast work

plan for the next load forecast or update

of a load forecast.

§ 1710.207 RUS criteria for approval of

load forecasts by distribution borrowers not

required to maintain an approved load

forecast on an ongoing basis.

Load forecasts submitted by

distribution borrowers that are

unaffiliated with a power supply

borrower, or by distribution borrowers

that are members of a power supply

borrower that has a total utility plant

less than $500 million and that is not

itself a member of another power supply

borrower with a total utility plant of

$500 million or more must satisfy the

following minimum criteria:

(a) The borrower considered all

known relevant factors that influence

the consumption of electricity and the

known number of consumers served at

the time the study was developed;

(b) The borrower considered and

identified all loads on its system of RE

Act beneficiaries and non-RE Act

beneficiaries;

(c) The borrower developed an

adequate supporting data base and

considered a range of relevant

assumptions; and

(d) The borrower provided RUS with

adequate documentation and assistance

to allow for a thorough and independent

review.

§ 1710.208 RUS criteria for approval of all

load forecasts by power supply borrowers

and by distribution borrowers required to

maintain an approved load forecast on an

ongoing basis.

All load forecasts submitted by power

supply borrowers and by distribution

borrowers required to maintain an

approved load forecast must satisfy the

following criteria:

(a) The borrower objectively analyzed

all known relevant factors that influence

the consumption of electricity and the

known number of customers served at

the time the study was developed;

(b) The borrower considered and

identified all loads on its system of RE

Act beneficiaries and non-RE Act

beneficiaries;

(c) The borrower developed an

adequate supporting database and

analyzed a reasonable range of relevant

assumptions and alternative futures;

(d) The borrower adopted methods

and procedures in general use by the

electric utility industry to develop its

load forecast;

(e) The borrower used valid and

verifiable analytical techniques and

models;

(f) The borrower provided RUS with

adequate documentation and assistance

to allow for a thorough and independent

review; and

(g) In the case of a power supply

borrower required to maintain an

approved load forecast on an ongoing

basis, the borrower adequately

coordinated the preparation of the load

forecast work plan and load forecast

with its member systems.

§ 1710.209 Approval requirements for load

forecast work plans.

(a) In addition to the approved load

forecast required under §§ 1710.202 and

1710.203, any power supply borrower

with a total utility plant of $500 million

or more and any distribution borrower

with a total utility plant of $500 million

or more must maintain an approved

load forecast work plan. RUS borrowers

that are members of a power supply

borrower with a total utility plant of

$500 million or more must cooperate in

the preparation of and submittal of the

load forecast work plan of their power

supply borrower.

(b) An approved load forecast work

plan establishes the process for the

preparation and maintenance of a

comprehensive database for the

development of the borrower’s load

forecast, and load forecast updates. The

approved load forecast work plan is

intended to develop and maintain a

process that will result in load forecasts

that will meet the borrowers’ own needs

and the requirements of this subpart. An

approved work plan represents a

commitment by a power supply

borrower and its members, or by a large

unaffiliated distribution borrower, that

all parties concerned will prepare their

load forecasts in a timely manner

pursuant to the approved load forecast

work plan and they will modify the

approved load forecast work plan as

needed with RUS approval to address

changing circumstances or enhance the

usefulness of the approved load forecast

work plan.

(c) An approved load forecast work

plan for a power supply borrower and

its members must cover all member

systems, including those that are not

borrowers. However, only members that

are borrowers, including the power

supply borrower, are required to follow

the approved load forecast work plan in

preparing their respective load forecasts.

Each borrower is individually

responsible for forecasting all its RE Act

beneficiary and non-RE Act beneficiary

loads.

(d) An approved load forecast work

plan must outline the coordination and

preparation requirements for both the

power supply borrower and its

members.

(e) An approved load forecast work

plan must cover a period of 2 or 3 years

depending on the applicable

compliance filing schedule elected

under § 1710.204.

(f) An approved load forecast work

plan must describe the borrower’s

process and methods to be used in

producing the load forecast and

maintaining current load forecasts on an

ongoing basis.

(g) Approved load forecast work plans

for borrowers with residential demand

of 50 percent or more of total kWh must

provide for a residential consumer

survey at least every 5 years to obtain

data on appliance and equipment

saturation and electricity demand. Any

such borrower that is experiencing or

anticipates changes in usage patterns

shall consider surveys on a more

frequent schedule. Power supply

borrowers shall coordinate such surveys

with their members. Residential

consumer surveys may be based on the

aggregation of member-based samples or

on a system-wide sample, provided that

the latter provides for relevant regional

breakdowns as appropriate.

(h) Approved load forecast work plans

must provide for RUS review of the load

forecasts as the load forecast is being

developed.

(i) A power supply borrower’s work

plan must have the concurrence of the

majority of the members that are

borrowers.

(j) The borrower’s board of directors

must approve the load forecast work

plan.

(k) A borrower may amend its

approved load forecast work plan

subject to RUS approval. If RUS

concludes that the existing approved

load forecast work plan will not result

in a satisfactory load forecast, RUS may

require a new or revised load forecast

work plan.

§ 1710.210 Waiver of requirements or

approval criteria.

For good cause shown by the

borrower, the Administrator may waive

any of the requirements applicable to

borrowers in this subpart if the

14790 Federal Register / Vol. 65, No. 54 / Monday, March 20, 2000 / Rules and Regulations

Administrator determines that waiving

the requirement will not significantly

affect accomplishment of RUS’

objectives and if the requirement

imposes a substantial burden on the

borrower. The borrower’s general

manager must request the waiver in

writing.

§§ 1710.211–1710.249 [Reserved]

Dated: March 10, 2000.

Jill Long Thompson,

Under Secretary, Rural Development.

[FR Doc. 00–6761 Filed 3–17–00; 8:45 am]

BILLING CODE 3410–15–P

NUCLEAR REGULATORY

COMMISSION

10 CFR Part 72

RIN 3150–AG 18

List of Approved Spent Fuel Storage

Casks: TN–32 Addition

AGENCY: Nuclear Regulatory

Commission.

ACTION: Final rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is amending its

regulations to add the Transnuclear TN–

32 cask system to the list of approved

spent fuel storage casks. This

amendment allows the holders of power

reactor operating licenses to store spent

fuel in this approved cask system under

a general license.

EFFECTIVE DATE: This final rule is

effective on April 19, 2000.

FOR FURTHER INFORMATION CONTACT:

Merri Horn, telephone (301) 415–8126,

e-mail mlh1@nrc.gov of the Office of

Nuclear Material Safety and Safeguards,

U.S. Nuclear Regulatory Commission,

Washington, DC 20555–0001.

SUPPLEMENTARY INFORMATION:

Background

Section 218(a) of the Nuclear Waste

Policy Act of 1982, as amended

(NWPA), requires that ‘‘[t]he Secretary

[of Energy] shall establish a

demonstration program, in cooperation

with the private sector, for the dry

storage of spent nuclear fuel at civilian

nuclear reactor power sites, with the

objective of establishing one or more

technologies that the [Nuclear

Regulatory] Commission may, by rule,

approve for use at the sites of civilian

nuclear power reactors without, to the

maximum extent practicable, the need

for additional site-specific approvals by

the Commission.’’ Section 133 of the

NWPA states, in part, ‘‘[t]he

Commission shall, by rule, establish

procedures for the licensing of any

technology approved by the

Commission under Section 218(a) for

use at the site of any civilian nuclear

power reactor.’’

To implement this mandate, the NRC

approved dry storage of spent nuclear

fuel in NRC-approved casks under a

general license, publishing a final rule

in 10 CFR Part 72 entitled ‘‘General

License for Storage of Spent Fuel at

Power Reactor Sites’’ (55 FR 29181; July

18, 1990). This rule also established a

new Subpart L within 10 CFR Part 72

entitled, ‘‘Approval of Spent Fuel

Storage Casks’’ containing procedures

and criteria for obtaining NRC approval

of dry storage cask designs.

Discussion

This rule will add the Transnuclear

TN–32 cask system to the list of NRC

approved casks for spent fuel storage in

10 CFR 72.214. Following the

procedures specified in 10 CFR 72.230

of Subpart L, Transnuclear submitted an

application for NRC approval with the

Safety Analysis Report (SAR) entitled,

‘‘TN–32 Dry Storage Cask Topical Safety

Analysis Report (TSAR).’’ The NRC

evaluated the Transnuclear submittal

and issued a preliminary Safety

Evaluation Report (SER) and a proposed

Certificate of Compliance (CoC) for the

Transnuclear TN–32 cask system. The

NRC published a proposed rule in the

Federal Register (64 FR 45923; August

23, 1999) to add the TN–32 cask system

to the listing in 10 CFR 72.214. The

comment period ended on November 8,

1999. Four comment letters were

received on the proposed rule.

Based on NRC review and analysis of

public comments, the NRC staff has

modified, as appropriate, its proposed

CoC and the Technical Specifications

(TSs) for the TN–32 cask system. The

NRC staff has also removed the bases

section from the TSs. The NRC staff has

modified its preliminary SER. The NRC

staff has also modified the rule language

by changing the word ‘‘Certification’’ to

‘‘Certificate’’ to clarify that it is the

Certificate that expires.

The proposed CoC has been revised to

clarify the requirements for making

changes to the CoC by specifying that

the CoC holder must submit an

application for an amendment to the

certificate if a change to the CoC,

including its appendices, is desired. The

CoC has also been revised to delete the

proposed exemption from the

requirements of 10 CFR 72.124(b)

because a recent amendment of this

regulation makes the exemption

unnecessary (64 FR 33178; June 22,

1999). The staff has also updated the

CoC, including the addition of explicit

conditions governing acceptance tests

and maintenance program, approved

contents, design features, and

authorization, and has removed the

bases section from the TSs attached to

the CoC to ensure consistency with

NRC’s format and content. In addition,

other minor, nontechnical changes have

been made to CoC 1021 to ensure

consistency with NRC’s new standard

format and content for CoCs.

The NRC finds that the TN–32 cask

system, as designed and when

fabricated and used in accordance with

the conditions specified in its CoC,

meets the requirements of 10 CFR Part

72. Thus, use of the TN–32 cask system,

as approved by the NRC, will provide

adequate protection of public health and

safety and the environment. With this

final rule, the NRC is approving the use

of the TN–32 cask system under the

general license in 10 CFR Part 72,

Subpart K, by holders of power reactor

operating licenses under 10 CFR Part 50.

Simultaneously, the NRC is issuing a

final SER and CoC that will be effective

on April 19, 2000. Single copies of the

CoC and SER are available for public

inspection and/or copying for a fee at

the NRC Public Document Room, 2120

L Street, NW. (Lower Level),

Washington, DC.

Summary of Public Comments on the

Proposed Rule

The NRC received four comment

letters on the proposed rule. The

commenters included the applicant, a

user’s group, and two letters from

members of the public. Copies of the

public comments are available for

review in the NRC Public Document

Room, 2120 L Street, NW (Lower Level),

Washington, DC 20003–1527.

Comments on the TN–32 Cask System

The comments and responses have

been grouped into nine subject areas:

general, radiation protection, accident

analysis, criticality analysis, thermal,

materials, design, technical

specifications, and miscellaneous

issues. Several of the commenters

provided specific comments on the draft

CoC, the NRC staff’s preliminary SER,

and the TSs. To the extent possible, all

of the comments on a particular subject

are grouped together. The listing of the

TN–32 cask system within 10 CFR

72.214, ‘‘List of approved spent fuel

storage casks’’ has not been changed as

a result of the public comments. A

review of the comments and the NRC

staff’s responses follow:

A. General

Comment A.1: One commenter stated

that the NRC is certifying more casks