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Rules and Regulations Federal Register

56477 

Vol. 79, No. 183 

Monday, September 22, 2014 

DEPARTMENT OF ENERGY 

10 CFR Part 905 

Revision to the Final Principles of 

Integrated Resource Planning for Use 

in Resource Acquisition and 

Transmission Planning 

AGENCY: Western Area Power 

Administration, DOE. 

ACTION: Final rule. 

SUMMARY: Western Area Power 

Administration (Western) published in 

the Federal Register two proposed 

changes to Western’s Final Principles of 

Integrated Resource Planning (IRP) in 

the Federal Register on June 29, 2011. 

The Final Principles of IRP were last 

published in the Federal Register on 

June 9, 1995. First, Western proposed 

that its current practice of developing 

project-by-project evaluation criteria to 

determine the quantity, length, and 

source of a long-term energy purchase 

be replaced with uniform, Western-wide 

evaluation criteria. Western will make 

no changes to its current practice of 

developing project-by-project evaluation 

criteria to evaluate long-term energypurchases. Second, Western proposed 

eliminating transmission planning 

principles that are unnecessary as a 

result of changes in the planning area 

made since 1995. Western will 

eliminate the transmission planning 

principles now accomplished by other 

means consistent with its proposal. 

DATES: This final rule will become 

effective on October 22, 2014. 

FOR FURTHER INFORMATION CONTACT: Dr. 

Anthony H. Montoya, Chief Operating 

Officer, Western Area Power 

Administration, P.O. Box 281213, 

Lakewood, CO 80228–8213, telephone 

(720) 962–7071. 

SUPPLEMENTARY INFORMATION: The Final 

Principles of IRP were published in the 

Federal Register on June 9, 1995 (60 FR 

30533). The Final Principles of IRP have 

served as the policy under which 

Western develops principles for 

acquiring project-specific, long-term 

resources and for public participation in 

transmission planning for some Western 

projects to increase transmission 

capability. 

Since completing the Final Principles 

of IRP for transmission planning in 

1995, the transmission industry has 

undergone significant change. Several of 

the comments Western received during 

the 1995 public process to develop the 

Final Principles of IRP requested that 

Western avoid duplicating efforts 

related to transmission planning. At the 

time the Final Principles of IRP were 

adopted, Western did not believe the 

procedures for public participation in 

transmission planning were duplicative. 

In light of the current vigorous 

involvement of stakeholders in regional 

and sub-regional transmission planning 

entities and the detailed transmission 

planning process set forth in Western’s 

Open Access Transmission Tariff 

(OATT), as described below, Western 

now believes that those comments have 

merit, and the transmission planning 

principles established under the Final 

Principles of IRP will now be 

eliminated. 

Specifically, Western is actively 

involved in several transmission 

planning efforts throughout its various 

regions. For example, Western is 

currently participating in the 

Transmission Expansion Planning 

Policy Committee under the Western 

Electricity Coordinating Council, 

Southwest Area Subregional Planning 

Transmission Group, Colorado 

Coordinated Planning Group, California 

Transmission Planning Group, Sierra 

Subregional Planning Group, 

WestConnect, and Mid-Continent Area 

Power Pool. These groups either did not 

exist or were in their infancies when the 

transmission planning principles set 

forth in the Final Principles of IRP were 

completed. In the ensuing 19 years, 

these planning entities have emerged to 

provide stakeholders the opportunity to 

become involved in regional integrated 

transmission planning including 

projects that would increase Western’s 

transmission capacity. 

Moreover, as of December 2009, 

Western’s OATT incorporated a detailed 

transmission planning process based 

upon three core objectives: (1) 

Maintaining reliable electric service; (2) 

improving the efficiency of electric 

system operations, including the 

provision of open and nondiscriminatory access to its transmission 

facilities; and (3) identifying and 

promoting new investments in 

transmission infrastructure in a 

coordinated, open, transparent, and 

participatory manner. The transmission 

planning process that is now a part of 

Western’s OATT aids timely, 

coordinated, and transparent 

information sharing that fosters the 

development of electric infrastructure, 

maintains reliability, and meets network 

load growth. The process includes open 

planning meetings that allow anyone 

including, but not limited to, network 

and point-to-point transmission 

customers; interconnected utilities; 

sponsors of transmission, generation 

and demand-side management 

developers; and other stakeholders to 

participate in all stages of development 

of Western’s transmission plans. 

Lastly, Western engages in annual 10- 

year transmission planning activities 

and joint-planning activities with its 

customers. These efforts identify and 

prioritize long-term transmission system 

additions, betterments, and 

replacements to meet customers’ needs 

and to ensure the reliability of the bulk 

electric system. 

As a result of the changes discussed 

above, and in consideration of the 

comments set forth in the following 

section, Western has determined to 

finalize its proposal, published in the 

Federal Register on June 29, 2011 (76 

FR 38146), to eliminate from Western’s 

Final Principles of IRP duplicative 

transmission planning principles. For 

the reasons discussed in the SUMMARY

section of this document, and in 

consideration of the comments set forth 

in the following section, Western has 

determined not to adopt its proposal of 

developing uniform, Western-wide 

evaluation criteria to determine the 

quantity, length and source of a longterm energy purchase. Instead, Western 

will continue to use its current practice 

of developing project-by-project 

evaluation criteria. 

Response to Comments 

Western held a public meeting on July 

21, 2011, in Lakewood, Colorado, to 

solicit input about Western’s revision to 

the Final Principles of IRP for Use in 

Resource Acquisition and Transmission 


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Planning. The meeting addressed the 

proposed evaluation criteria and 

procedures Western would use for longterm resource acquisition and the 

elimination of the transmission 

planning principles as set forth in the 

Final Principles of IRP. Western 

received oral comments at its July 21, 

2011, public meeting and written 

comment letters. The comments 

received and Western’s responses 

follow: 

Transmission Planning 

Comment: Numerous comments 

supported the removal of transmission 

planning from the IRP process, although 

the existing coordination between 

transmission and resource planning 

efforts and processes provides 

significant value and should be 

maintained to the extent possible. One 

comment urged Western to retain 

transmission planning as part of the IRP 

process and for Western to commit to a 

robust, open, and transparent planning 

process. 

Response: Western appreciates the 

support for removing the transmission 

planning from its Final Principles of 

IRP. Western determined that a robust, 

open, and transparent transmission 

planning process is now provided by 

planning efforts of regional and subregional planning entities and Western’s 

OATT. Western agrees there is a nexus 

between transmission planning and 

resource planning efforts. This will 

remain a consideration for Western. 

Given developments in these areas of 

transmission planning since the original 

IRP process was completed, Western 

determined that including transmission 

planning in the IRP Principles is 

redundant. 

Comment: Generators are discouraged 

from locating in Western’s service 

territories because Western does not 

participate in a regional transmission 

organization. 

Response: This comment is outside 

the scope of this process. 

Resource Acquisition 

Comment: Several comments asked 

why a proposed change in Western’s 

policy toward resource acquisitions is 

needed now since there is no legislative 

mandate or ongoing energy crisis and 

the current policy seemingly works 

well. Comments suggested Western 

delay its process until it can provide a 

more complete presentation of its 

proposal and engage in further 

discussions with its customers. 

Response: Western’s primary goal in 

proposing modifications to the existing 

Principles of IRP was to provide 

Western the ability to make long-term 

purchases in a more expeditious and 

streamlined manner. Western 

determined, in consideration of the 

comments received on this issue, to 

leave the existing procedures in place. 

The existing Principles of IRP commit 

Western to performing a public process 

before each purchase of a long-term 

resource(s), which allows for a 

transparent process for long-term 

purchases and engagement of customers 

prior to making such purchases. 

Comment: Is there a real need for 

purchases longer than 5-years given that 

short-term contracts provide flexibility 

and reduce the risk of financially 

overextending Western’s power 

customers? 

Response: Western will not change 

this acquisition principle. Although 

there could be several factors that may 

impact Western’s decision to enter into 

a long-term purchase, such as a longterm generation reduction resulting 

from changes in hydrology, reservoir 

operations, or extended outages. 

Western has found that short-term 

contracts can effectively satisfy its 

firming needs, and the existing 

principles provide enough flexibility 

and allow Western’s customers, on a 

region-specific basis, to consider longterm resource strategies. 

Comment: Several comments state 

that changing to a Western-wide policy 

for long-term purchases would not take 

into account operational characteristics 

and contractual provisions of each 

region, which can be strikingly 

different, and should be developed on a 

regional basis instead. 

Response: Each of Western’s regional 

offices follows the same general criteria 

in evaluating whether or not to make a 

long-term purchase. Each region will 

continue to involve its region-specific 

customers in the decision-making 

process and take into account regionspecific impacts. 

Comment: Increasing the diversity of 

Western’s portfolio should be included 

in the list of ‘‘occurrences’’ in Principle 

No. 1, in addition to the partial list 

provided that sets forth reasons for 

making such purchases, such as lost 

hydropower generation or drought. 

Response: Western markets power in 

a manner to encourage the most 

widespread use at the lowest possible 

rates consistent with sound business 

principles. Acquiring a renewable 

resource solely for the purpose of 

portfolio diversity, regardless of price, 

runs counter to Western’s mission. 

However, diversity is one of the existing 

principles that Western will continue to 

use to evaluate long-term resource 

acquisitions. 

Planning and Coordination 

Comment: Several comments note 

there are existing processes and regular 

planning meetings to discuss potential 

resource acquisitions developed by 

Western and customers that address 

drought, resource, and financial 

interests. These processes have been 

developed over a period of years 

following extensive collaboration 

between Western and its customers and 

should not be undermined by a new 

policy. Comments expressed concern 

about how Western’s new proposal 

would work with the existing processes 

and if those current processes would be 

continued in the future. 

Response: Western does not plan to 

change any ongoing processes or regular 

planning meetings with its customers. 

Western will continue to coordinate 

closely with its customers about longterm purchase requirements. 

Comment: Fundamental principles 

should be developed in consultation 

with project-specific customers and all 

interested parties with respect to 

hydrology, capacity/energy purchased, 

and customer needs and willingness to 

pay for purchases and/or opt out of 

payment for such purchases. 

Notification and planning of such 

purchases should be made to the 

customers and other interested parties 

prior to any long-term transaction. 

Response: Western does not plan to 

change any ongoing processes or regular 

planning meetings to discuss resource 

acquisitions with its customers. Western 

will continue to coordinate closely with 

its customers to develop criteria for 

long-term purchase requirements. 

Implementation 

Comment: If Western is considering 

requests for resource proposals (short or 

long-term), notices and invitations for 

bids should be posted on Western’s Web 

site with sufficient notice to the public. 

Response: Western is not changing its 

acquisition principles. Western does 

provide notice to potential suppliers 

and interested stakeholders when 

soliciting requests for power depending 

upon the term sought. Typically, shortterm purchases do not require as 

involved a process as long-term 

purchases; however, both processes 

involve appropriate notification and 

involvement following the specific 

processes used by each of Western’s 

regional offices. 

Comment: Does Western plan to send 

out proposed revisions after the 

comment period is over? 

Response: Western carefully 

considered the comments received and 

any potential revisions. Western 


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decided to retain the existing 

acquisition principles and remove only 

the transmission planning principles, 

which are now being performed under 

Western’s OATT. Given the comments 

provided, the vast majority of which 

supported removal of the transmission 

planning principles, Western has 

determined that an additional comment 

period is not necessary. 

Comment: The proposal in the June 

29, 2011, Federal Register notice (76 FR 

38146) has changes to sections 1, 4, 5, 

and 6 of Western’s Final Principles of 

IRP. Will the 1995 Principles be 

superseded in their entirety? 

Response: Western is maintaining its 

existing IRP policy and has eliminated 

only the duplicative Transmission 

Planning Principles. Therefore, the 1995 

resource acquisition principles will 

remain in place. 

Comment: Would it be possible to see 

all proposed revisions in one place to 

eliminate confusion? Also, why are 

comments due 8 days after the public 

meeting? 

Response: Western posted a redline/

strikeout version of the Proposed 

Revised Final Principles of IRP Related 

to Resource Acquisition on its Web site 

and also provided this information at 

the July 21, 2011, public meeting. 

Western also provided 30 days for the 

submission of comments. The Federal 

Register notice was published on June 

29, 2011, and comments were due to 

Western on July 29, 2011. Due to 

logistics, Western’s public meeting was 

scheduled late in that period. All parties 

had 30 days from initial publication to 

comment. 

Comment: Western should include in 

its work plan and in the IRP Principles 

a proposal to aggregate demand from a 

number of smaller utilities and loads so 

these customers can benefit from the 

economies of scale of investing in a 

larger resource. 

Response: Although small customers 

may benefit from pooled resource 

acquisition, coordinating such 

purchases is considered beyond the 

scope of the proposal. 

Comment: Western should seek to 

coordinate its Request for Proposals 

(RFP) with those of other regional 

entities so all parties may capture any 

economic and environmental benefits of 

larger-scale resource acquisitions. 

Response: Western would consider 

coordination of RFPs among its regional 

offices to achieve economies of scale, 

and the load diversity created by 

Western’s extensive geographic service 

territory may make certain purchases 

more economically viable. Western 

could also consider a combined RFP 

with others for long-term resource 

acquisitions. The feasibility of such a 

combined RFP would depend on the 

complexity of coordination and the 

various acquisition requirements. 

Comment: Western should create a 

‘‘standard offer,’’ similar to one offered 

by the Tennessee Valley Authority 

(TVA), for small- to mid-sized 

renewables that would offer set prices 

and long-term contracts under 

simplified application and contracting 

processes. 

Response: Western and TVA have 

very different authorities and 

authorizations. TVA has a much broader 

authority for providing resources for 

load growth within its region. Western’s 

resources are limited to generation 

provided at certain facilities. Western’s 

authorizing legislation requires it to 

deliver this power at the lowest cost 

possible consistent with sound business 

practices. To accomplish this goal, 

Western is committed to having an open 

process available for all resource 

providers under its existing procedures. 

Comment: Western has a great 

opportunity to facilitate renewable 

resource development through the use 

of its hydro resources to provide firming 

and shaping products for variable 

resources like wind. 

Response: Western already uses the 

long-term, load-following capability of 

the Federal hydroelectric facilities to 

support the obligations of its firm 

electric service contracts. Western will 

continue to consider resource diversity 

in evaluating long-term resource 

acquisitions. 

Evaluation Criteria 

Comment: Western’s existing 

hydropower resources should be 

considered as a renewable resource 

under the IRP policy, and Western 

should ensure that any renewable 

purchases do not operationally affect 

hydropower generation. Conversely, 

another comment suggested that 

Western should not consider large-scale 

hydropower as a renewable resource. 

Response: Western supports 

consideration of large-scale hydropower 

as a clean, renewable, power resource 

and will work with its customers, where 

appropriate, to promote hydropower as 

a recognized renewable resource. 

Western determined the existing 

evaluation principles, as a whole, 

provide ample opportunity to assess the 

potential impacts any resource may 

have on operation of hydropower 

resources. 

Comment: The proposed evaluation 

criteria are not clear. Further, defining 

the process for using the evaluation 

criteria is needed before an assessment 

of the criteria’s value can take place. 

Response: Western has decided not to 

adopt the proposed evaluation criteria. 

Western’s existing acquisition 

principles are sufficient and broad 

enough to give Western the needed 

flexibility to make future, long-term 

purchases. There are many aspects to 

long-term power purchases, and the 

existing guidelines are sufficient to 

provide guidance to Western in how 

resource acquisitions should be 

considered. Additional consideration of 

a resource will be provided by each of 

Western’s regions at the time a longterm purchase is considered. 

Comment: The diversity criterion is 

broad enough to contain an adequate 

consideration of renewable energy 

resources; therefore, a separate criterion 

for renewable resources is not needed. 

Response: Under its existing 

acquisition principles, Western will 

continue to give consideration to the 

environmental attributes of different 

generation sources as part of any longterm purchase. 

Comment: Western should remove 

references to demand-side management 

from Criterion 5 (e)—‘‘Environmental 

Impact.’’ 

Response: Although Western is not 

adopting new principles, under its 

existing acquisition principles the 

criteria will continue to address 

environmental impacts, as well as other 

relevant considerations, when 

evaluating possible long-term resource 

options, which include demand-side 

management. 

Comment: The proposed process 

language is silent about how the 

evaluation criteria would be used for 

any specific resource procurement need; 

each criterion could have different 

weightings with such weightings being 

contingent on the specifics of the 

procurement need. The comment 

proposes revising the Section 5 

introductory statement to read: ‘‘5. 

When evaluating potential resource 

acquisitions under the Final Principles 

of Integrated Resource Plan, the 

following criteria will be considered, 

and given weightings based upon the 

specific resource acquisition being 

considered.’’ 

Response: Western is not changing its 

acquisition principles. Under Western’s 

existing principles, there may be a need 

to weight the evaluation contingent 

upon the type of purchase that needs to 

be made, which can be accomplished as 

part of a specific resource purchase. 

Comment: Why did Western include 

Criterion 5 (e)—‘‘Environmental 

Impact?’’ What does Western intend by 

this criterion? Is Western required by 

law to have this criterion in resource 

evaluations? If not, it could be deleted 


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in favor of those identified in Criterion 

5 (g)—‘‘Renewable Energy Resource.’’ 

Response: As part of a long-term 

resource acquisition, Western must 

perform a National Environmental 

Policy Act (NEPA) analysis. Although 

Western is not changing its acquisition 

principles, the level of NEPA analysis 

will continue to be decided as a part of 

the specific acquisition process. 

Comment: Western would have 

greater flexibility if Criterion 5 (g)— 

‘‘Renewable Energy Resource,’’ were 

instead titled ‘‘Environmental/Green 

Attributes (Including Renewables),’’ 

which would enable Western to make 

purchases, such as large-scale 

hydropower, that are sometimes not 

considered as renewable-energy 

resources under legislative mandates. 

This change would allow Western to 

address the question: ‘‘Does the 

replacement resource being procured 

have comparable environmental 

attributes to what is required?’’ 

Response: Western agrees with the 

concept, and the existing principles 

already allow the consideration of 

renewable resource options. The 

language is broad enough to allow 

Western to consider both existing and 

emerging technologies providing 

potential environmental/green 

attributes. 

Comment: Criterion 5 (i)— 

‘‘Transmission Availability’’ might be 

more appropriately titled 

‘‘Deliverability.’’ Deliverability 

encompasses transmission availability, 

but in addition covers any other 

delivery-related issues. This would give 

more flexibility to Western in long-term 

resource procurement decisions. 

Response: The existing principles 

require that Western consider 

dependability and dispatchability to 

capture delivery-related concerns. 

Comment: Agree with Criterion 5 

(h)—‘‘Risk.’’ Any risk analysis should 

include fuel price and energy-policy 

risks. 

Response: Western appreciates the 

comment and will continue to consider 

all relevant factors when evaluating 

purchase decisions using its existing 

principles including, but not limited to, 

fuel price and energy-policy risks. 

Comment: Contractual obligations 

should be adjusted based on generation 

facility type. ‘‘Dependability’’ should be 

redefined for renewables compared to 

traditional generation, and 

‘‘Dispatchability’’ and ‘‘Transmission 

Availability’’ criteria should not be so 

rigid as to discriminate against variableenergy resources. 

Response: Although Western is not 

changing its acquisition principles, 

dependable and dispatchable resources 

continue to be required for Western’s 

operations. Having available 

transmission to receive and make 

deliveries of power is critical. Western 

is supportive of industry efforts to better 

integrate renewable resources and will 

consider the availability and 

dependability of all potential resources 

when evaluating a potential long-term 

purchase. Western will not 

automatically rule out renewable 

resources in considering energy 

purchases and will continue to take into 

account all of the existing principles 

when evaluating a potential long-term 

purchase. 

Comment: Western, under Criterion 5 

(g)—‘‘Renewable Energy Resource,’’ 

should clearly state that it will give 

priority to renewable resources and that 

these types of resources will receive 

additional weighting when Western 

evaluates all proposed resources against 

its IRP criteria. 

Response: When evaluating resources 

for a particular purchase, Western will 

evaluate all resource types following the 

guidelines in the existing Final 

Principles of IRP. Each resource 

acquisition will be evaluated on its own 

merits and not in a way that 

immediately excludes or promotes 

certain resource options. 

Comment: Will Western provide more 

detail on the criteria used to define risk? 

Response: Western’s existing 

principles contain risk as a criterion as 

understood as part of good utility 

practice. For example, creditworthiness 

of energy suppliers is a legitimate 

concern of all utilities; having a 

resource unavailable due to the 

financial insolvency of a supplier is not 

in Western’s interest. With regard to 

market uncertainties, Western will 

continue to evaluate carefully all 

potential power resources, including the 

consideration of externalities affecting 

the viability of a resource. 

Comment: Western should consider 

long-term, life-cycle cost, including 

environmental costs, over a 20- to 25- 

year contract period, so the full value of 

renewable energy is demonstrated. 

Western should also take into account 

that solar resources are fueled for free 

and avoid the uncertainty of volatile 

fossil fuel commodity markets. Another 

comment suggested that some 

evaluation criteria may not reflect 

impending changes in energy markets. 

A comment suggested language stating 

that Western, when assessing whether to 

enter a long-term contract, consider 

near-future changes in a resource’s cost, 

dependability, dispatchability, risk, and 

transmission availability. 

Response: Western’s existing 

principles are flexible and broad enough 

to accommodate the inevitable nuances 

that exist among various potential, longterm, purchase power options. In 

conjunction with Western’s customers 

and in an open and transparent process, 

these principles will be used to examine 

and properly consider each potential 

resource on a case-by-case basis. 

Comment: Western should compare 

the full cost of each proposal over the 

life of a contract and choose the 

proposal that will be the most cost 

effective. Another noted that the cost of 

coal will be increasing in the future, and 

this should be considered in Western’s 

long-term planning. 

Response: In response to several 

comments urging additional criteria, 

Western determined the existing 

principles are flexible and broad enough 

to accommodate the different 

circumstances that exist among various 

potential long-term, purchase power 

options. In conjunction with Western’s 

customers and in an open and 

transparent process, these principles 

will be used to examine and properly 

consider each potential resource 

acquisition. 

Comment: Western, as a government 

entity, needs to ensure that power 

purchases minimize adverse impacts to 

the environment and should ensure 25 

percent of its energy purchase comes 

from renewable energy resource by 

2025. 

Response: Western intends to 

consider renewable resources for future, 

long-term, resource acquisitions; 

however, a pre-commitment to purchase 

power from any specific resource type, 

regardless of price, runs counter to 

Western’s authority. Western is required 

to conduct its business in accordance 

with applicable law. Specifically, 

Western markets Federal hydroelectric 

power in a manner to encourage the 

most widespread use at the lowest 

possible rates to consumers consistent 

with sound business principles. 

Comment: Western should include 

evaluation of externalities such as 

health costs, costs of environmental 

damage, and climate change for its 

purchases. 

Response: The evaluation of these 

types of items is included in Western’s 

existing principles. 

Comment: When Western purchases 

power resources, it should take all 

reasonable steps to minimize adverse 

environmental impacts by purchasing 

clean, renewable energy such as solar. 

Response: Western will continue to 

consider potential resources, including 

clean, renewable energy, for long-term 

purchases under its existing principles. 

Comment: Concerning Criterion 5 

(i)—‘‘Transmission,’’ does Western 


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envision this was intended only to 

assess whether existing transmission 

would be available to deliver a resource 

or a broader assessment that would 

include the difficulty/cost of 

constructing new transmission to 

facilitate delivery of the resource in a 

timely manner? 

Response: Transmission delivery 

capability is a necessary component of 

any energy purchase, and consideration 

of that aspect is critical. Western has 

always considered this aspect, which 

would include evaluating the potential 

of new transmission, when acquiring 

resources. 

Comment: Improvements to Western’s 

IRP Principles should apply not only to 

long-term purchases (5-years or more), 

but to short-term purchases as well. 

Response: Western is not changing its 

acquisition principles for acquisition of 

resources for more than 5 years. 

Applying these same criteria to shortterm purchases is not practical due to 

the quick turnaround necessary for daily 

and monthly purchases. The existing 

Final Principles of IRP require 

significant evaluation and analysis and 

are not conducive to a short-term 

resource acquisition process. In its June 

9, 1995, Federal Register notice (60 FR 

30533), Western responded to a similar 

comment and stated that ‘‘Western 

believes that it is important to maintain 

flexibility within these principles.’’ 

Comment: Western should insert the 

following language to Principle No. 1: 

‘‘In determining the sources of power 

Western will deliver to its customers 

under all existing and new contracts [to 

make up for shortfalls in Federal 

hydropower generation][sic], Western 

will evaluate energy savings programs, 

customer demand response programs, 

and renewable energy generation 

alongside fossil resources, using 

consistent and transparent criteria that 

treat these resources objectively.’’ 

Response: Western is not changing its 

acquisition principles for acquisition of 

resources. The existing principles 

include renewable resource options, 

which will be considered in relation to 

the needs of each respective region. 

Comment: Western should 

affirmatively commit to meet a 

significant part of its long-term, powerpurchase needs from solar and other 

renewable resources within a year. 

Western should conduct a public 

process to identify the quantity and type 

of renewable power each Western 

regional project office should purchase 

through competitive processes. This 

effort should culminate with the 

execution of long-term, purchase-power 

contracts for both central station and 

distributed renewable power resources. 

Western should, within a year, set a 

specific renewable target to meet (e.g., 

25 percent by 2025). 

Response: Western will evaluate the 

resource used to meet any long-term, 

power-purchase needs using the 

existing principles, including renewable 

power, within the respective region 

with a long-term resource need. 

Comment: We support Western’s 

proposed changes to its IRP Policy and 

with Western’s definition of Criterion 5 

(b)—‘‘Dependability;’’ Criterion 5 (d)— 

‘‘Diversity;’’ Criterion 5 (f)—‘‘Indian 

Preference;’’ and Criterion 5 (i)— 

‘‘Transmission Availability,’’ and 

support minimized transmission losses. 

Response: Western appreciates the 

comment, but has determined not to 

revise the existing principles. 

Comment: Technological changes 

have made wind and photovoltaic 

energy more dependable and 

dispatchable. Renewables offer more 

long-term reliability in terms of risk and 

are a good replacement for fossil fuels. 

Long-term contracts promote the 

certainty needed for capital 

investments. 

Response: Western appreciates the 

comment and understands the benefits 

of renewable energy. 

Comment: Leaving the resource 

evaluation criteria more general will 

provide the maximum flexibility for any 

specific long-term resource 

procurement. 

Response: Western determined the 

existing acquisition principles strike the 

appropriate balance between allowing 

regional flexibility and providing 

general guidance and has determined 

not to revise the acquisition principles. 

Revised Principles of Integrated 

Resource Planning Related for Use in 

Resource Acquisition and Transmission 

Planning 

Accordingly, the Western Area Power 

Administration amends its Final 

Principles of IRP by eliminating entirely 

the requirements in the section titled: 

‘‘II. Transmission Planning Principles:’’ 

No changes will be made to the section 

titled: ‘‘I. Resource Acquisition 

Principles:’’ 

Procedure Requirements 

Environmental Evaluation 

Western’s notice to revise the Final 

Principles of IRP is an administrative 

action covered by an existing NEPA 

categorical exclusion. A categorical 

exclusion has been prepared and 

executed for this process. Once projectspecific actions are identified under the 

Revised Final Principles of IRP and the 

project-specific evaluation developed 

through the existing process, those 

actions would be individually subject to 

the appropriate level of NEPA review. 

Factors affecting the level of NEPA 

review include whether the projectspecific action would integrate a new 

generation resource, precipitate changes 

to the transmission system, or change 

the normal operating limits of existing 

generation resources. 

Determination Under Executive Order 

12866 

Western has an exemption from 

centralized regulatory review under 

Executive Order 12866; accordingly, no 

clearance of this document by the Office 

of Management and Budget is required. 

List of Subjects in 10 CFR Part 905 

Electric power, Electric utilities, 

Energy conservation, Reporting and 

recordkeeping requirements. 

Dated: September 11, 2014. 

Mark A. Gabriel, 

Administrator. 

For the reasons set forth in the 

preamble, the Department of Energy 

amends Part 905 of title 10 of the Code 

of Federal Regulations as set forth 

below. 

PART 905—ENERGY PLANNING AND 

MANAGEMENT PROGRAM 

■ 1. The authority citation for part 905 

continues to read as follows: 

Authority: 42 U.S.C. 7152, 7191; 42 U.S.C. 

7275–7276c. 

■ 2. Add subpart E to read as follows: 

Subpart E—Final Principles of Integrated 

Resource Planning for Western Resource 

Acquisition 

Sec. 

905.50 Resource acquisition principles. 

905.51 Transmission planning principles. 

Subpart E—Final Principles of 

Integrated Resource Planning for 

Western Resource Acquisition 

§ 905.50 Resource acquisition principles. 

Western’s resource acquisition 

activities will be determined by projectspecific power marketing plans, 

hydropower production capability, and 

the application of the following 

principles of IRP: 

(a) Western will consider a full range 

of resource options, both supply-side 

and demand-side, as well as renewable 

resource options. 

(b) On a project-by-project basis, 

Western, through a public process 

involving interested stakeholders will 

develop criteria to be used in evaluating 

power resource alternatives. 

(c) Evaluation criteria will address 

cost, environmental impact, 


asabaliauskas on DSK5VPTVN1PROD with RULES
56482 Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Rules and Regulations 

1Public Law 111–203 section 1100E, 124 Stat. 

1376 (2010). 

2 76 FR 18349 (Apr. 4, 2011). 

3 76 FR 78500 (Dec. 19, 2011). 

4See also 12 U.S.C. 5519(b). 

5See comments 2(e)–9 in Supplements I of 12 

CFR part 213 and 12 CFR part 1013. 

dependability, dispatchability, risk, 

diversity, and the ability to verify 

demand-side alternatives. Evaluation 

criteria will be reviewed as the need for 

resources changes or when long-term 

commitments to purchase power expire. 

(d) Evaluation criteria will be 

consistent with Western’s power 

marketing policy, which states that 

Federal power is to be marketed in such 

a manner as to encourage the most 

widespread use thereof at the lowest 

possible rates to consumers consistent 

with sound business principles. The 

policy, found in Delegation Order No. 

00–037.00A, is derived from statutes 

authorizing the sale of power from both 

Department of the Army and 

Department of the Interior hydroelectric 

projects. These statutes include section 

5 of the Flood Control Act of 1944, 16 

U.S.C. 825(s) and section 9(c) of the 

Reclamation Project Act of 1939. 

(e) Resource acquisition planning will 

be consistent with power marketing 

plans and associated contractual 

obligations. 

(f) Resource acquisition decisions will 

be documented and made available to 

Western’s power customers and the 

public. 

§ 905.51 Transmission planning principles. 

Western’s transmission planning is 

conducted to assess the capability of the 

Federal transmission system to provide 

adequate and reliable electric service to 

its customers and the interconnected 

power grid. These planning efforts occur 

as part of its participation in regional 

and sub-regional planning entities as 

well as Western’s Open Access 

Transmission Tariff. 

[FR Doc. 2014–22367 Filed 9–19–14; 8:45 am] 

BILLING CODE 6450–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 213 

[Docket No. R–1495] 

RIN 7100–ZA–09 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1013 

Consumer Leasing (Regulation M) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board); and 

Bureau of Consumer Financial 

Protection (Bureau). 

ACTION: Final rule; official 

interpretations and commentary. 

SUMMARY: The Board and the Bureau are 

publishing final rules amending the 

official interpretations and commentary 

for the agencies’ regulations that 

implement the Consumer Leasing Act 

(CLA). The Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act) amended the CLA by 

requiring that the dollar threshold for 

exempt consumer leases be adjusted 

annually by any annual percentage 

increase in the Consumer Price Index 

for Urban Wage Earners and Clerical 

Workers (CPI–W). Based on the annual 

percentage increase in the CPI–W as of 

June 1, 2014, the Board and the Bureau 

are adjusting the exemption threshold to 

$54,600, effective January 1, 2015. 

Because the Dodd-Frank Act also 

requires similar adjustments in the 

Truth in Lending Act’s threshold for 

exempt consumer credit transactions, 

the Board and the Bureau are making 

similar amendments to each of their 

respective regulations implementing the 

Truth in Lending Act in a rule 

published elsewhere in the Federal 

Register. 

DATES: This final rule is effective 

January 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Board: Vivian W. Wong, Counsel, 

Division of Consumer and Community 

Affairs, Board of Governors of the 

Federal Reserve System, at (202) 452– 

3667; for users of Telecommunications 

Device for the Deaf (TDD) only, contact 

(202) 263–4869. 

Bureau: David Friend, Counsel, Office 

of Regulations, Bureau of Consumer 

Financial Protection, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act of 2010 

(Dodd-Frank Act) increased the 

threshold in the Consumer Leasing Act 

(CLA) for exempt consumer leases from 

$25,000 to $50,000, effective July 21, 

2011.1 In addition, the Dodd-Frank Act 

requires that this threshold be adjusted 

annually for inflation by the annual 

percentage increase in the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (CPI–W), as published 

by the Bureau of Labor Statistics. In 

April 2011, the Board issued a final rule 

amending Regulation M (which 

implements the CLA) consistent with 

these provisions of the Dodd-Frank 

Act.2

Title X of the Dodd-Frank Act 

transferred rulemaking authority for a 

number of consumer financial 

protection laws from the Board to the 

Bureau, effective July 21, 2011. In 

connection with this transfer of 

rulemaking authority, the Bureau issued 

its own Regulation M implementing the 

CLA in an interim final rule, 12 CFR 

part 1013 (Bureau Interim Final Rule).3

The Bureau Interim Final Rule 

substantially duplicated the Board’s 

Regulation M, including the revisions to 

the threshold for exempt transactions 

made by the Board in April 2011. 

Although the Bureau has the authority 

to issue rules to implement the CLA for 

most entities, the Board retains 

authority to issue rules under the CLA 

for certain motor vehicle dealers 

covered by section 1029(a) of the DoddFrank Act, and the Board’s Regulation 

M continues to apply to those entities.4

Section 213.2(e)(1) of the Board’s 

Regulation M and § 1013.2(e)(1) of the 

Bureau’s Regulation M, and their 

accompanying commentaries, provide 

that the exemption threshold will be 

adjusted annually effective January 1 of 

each year based on any annual 

percentage increase in the CPI–W that 

was in effect on the preceding June 1. 

Any increase in the threshold amount 

will be rounded to the nearest $100 

increment. For example, if the annual 

percentage increase in the CPI–W would 

result in a $950 increase in the 

threshold amount, the threshold amount 

will be increased by $1,000. However, if 

the annual percentage increase in the 

CPI–W would result in a $949 increase 

in the threshold amount, the threshold 

amount will be increased by $900.5

II. Adjustment and Commentary 

Revision 

Effective January 1, 2015, the adjusted 

exemption threshold amount is $54,600. 

This adjustment is based on the CPI–W 

index in effect on June 1, 2014, which 

was reported on May 15, 2014. The 

Bureau of Labor Statistics publishes 

consumer-based indices monthly, but 

does not report a CPI change on June 1; 

adjustments are reported in the middle 

of the month. The CPI–W is a subset of 

the CPI–U index (based on all urban 

consumers) and represents 

approximately 28 percent of the U.S. 

population. The adjustment reflects a 2 

percent increase in the CPI–W from 

April 2013 to April 2014 and is rounded 

to the nearest $100 increment. 

Accordingly, the Board and the Bureau 

are revising the commentaries to their 

respective regulations to add new 

comment 2(e)–9.vi stating that, from 

January 1, 2015 through December 31, 


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