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[Federal Register: March 20, 2000 (Volume 65, Number 54)]
[Rules and Regulations]               
[Page 14785-14790]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr00-2]                         


[[Page 14785]]

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DEPARTMENT OF AGRICULTURE

**Rural****Utilities****Service**

7 CFR Part 1710

RIN 0572-AB05

 
Load Forecasts

AGENCY:  **Rural****Utilities****Service**, USDA.

ACTION:  Final rule.

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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: [email protected].

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 Sec. 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.

[[Page 14786]]

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 PRE-LOAN 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:


Sec. 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 Sec. 1710.152(a) to read as follows:


Sec. 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


Sec. 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

[[Page 14787]]

this subpart, is one of the primary documents that a borrower is 
required to submit to support a loan application.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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 Sec. 1710.202 or Sec. 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.


Sec. 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

[[Page 14788]]

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.


Sec. 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 Sec. 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. Computer-generated forms or 
electronic

[[Page 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.


Sec. 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.


Sec. 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.


Sec. 1710.209  Approval requirements for load forecast work plans.

    (a) In addition to the approved load forecast required under 
Secs. 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 Sec. 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.


Sec. 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

[[Page 14790]]

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.


Secs. 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
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