[Federal Register Volume 62, Number 38 (Wednesday, February 26, 1997)]
[Notices]
[Pages 8709-8710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4693]


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DEPARTMENT OF ENERGY
Western Area Power Administration


Proposal To Extend Electric Power Resource Commitments to 
Contractors of the Salt Lake City Area Integrated Projects by 
Application of the Energy Planning and Management Program Power 
Marketing Initiative

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposal.

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SUMMARY: In 1995, the Department of Energy, Western Area Power 
Administration (Western) completed an environmental impact statement 
(EIS), DOE/EIS-0182, on its Energy Planning and Management Program 
(Program). Western published a Final Rule adopting the Program on 
October 20, 1995 (10 CFR Part 905). The Program has two major 
components: a requirement that all long-term, firm electrical power 
contractors prepare integrated resource plans (IRP) or small customer 
plans; and a Power Marketing Initiative (PMI) in which these 
contractors will receive an extension of a major portion of the 
resources available at the time the contracts expire. The Record of 
Decision (ROD) stated that Western would implement the requirements for 
customers to prepare IRPs and small customer plans immediately, but 
that application of the PMI would be done on a project-specific basis. 
Western now proposes to apply the PMI to the long-term, firm power 
contracts of the Salt Lake City Area Integrated Projects (SLCA/IP).

DATES: Western will accept written comments on or before May 27, 1997. 
The times and locations of four information/comment meetings will be 
announced in a subsequent notice in the Federal Register.

ADDRESSES: Comments may be submitted to: Mr. David Sabo, Western Area 
Power Administration, Colorado River Storage Project Manager, P.O. Box 
11606, Salt Lake City, UT 84147-0606.

SUPPLEMENTARY INFORMATION: Western first proposed the Program on April 
19, 1991 (56 FR 16093). The goals of the Program were to encourage 
efficient energy use by Western's long-term, firm power customers by 
requiring integrated resource planning and to extend Western's firm 
power resource commitments as contracts expire. Western published its 
notice of intent to prepare an EIS on the Program in the Federal 
Register on May 1, 1991 (56 FR 19995).
    President Bush signed the Energy Policy Act (EPAct) into law on 
October 24, 1992. Section 114 of EPAct amended Title II of the Hoover 
Power Plant Act of 1984 to require the preparation of IRPs by Western's 
customers. Western adjusted its proposed Program to fully incorporate 
the provisions of this law.
    A notice of proposed rulemaking for the Program was published in 
the Federal Register on August 9, 1994 (59 FR 40543), with seven public 
information/comment forums held at various locations during September 
1994. In the August 9 Notice, Western estimated that initially 98 
percent of SLCA/IP resources available at the end of the term of 
existing contracts would be extended.

[[Page 8710]]

    In the Final rule, Western stated that application of the PMI 
including length of resource extension and the amount of resources 
extended would be determined through a project specific process later.
    Under the PMI, existing firm power sales commitments were to be 
extended for 20 years beyond the existing termination date. A 
commitment of not less than 96 percent of the hydroelectric power 
resource determined to be available to the customers was to be 
extended, and a power resource pool of up to 4 percent of the power 
from these customers would be created.
    The resource pool would be used for allocations to new customers 
and contingencies. The rule stated that a more precise decision on how 
resource pools would be used would be made by Western later. Western's 
rule further stated that the percentage of existing commitments 
extended for the other projects would be determined later. It also 
stated that the application of the PMI for the ``Salt Lake City Area 
Integrated Projects Marketing Plan would be determined following 
completion of the separate National Environmental Policy Act of 1969 
(NEPA) process currently under way.'' That NEPA process is the SLCA/IP 
Electric Power Marketing EIS. The final EIS was published in January 
1996, and the ROD was published in October 1996.
    Western proposes to apply the PMI, (10 C.F.R. 905.31 through 
905.37), to the SLCA/IP. This includes, among other things, a proposal 
to extend 96 percent of the SLCA/IP contractors' entitlement of long-
term, firm Federal resources as of September 30, 2004, for an 
additional 20 years. Western proposes that an initial resource pool of 
up to 4 percent of available Federal resources be created for new 
customers to encourage customer development of new technologies for 
conservation or renewable resources and for contingencies. Western's 
analysis shows that a resource pool of 4 percent of available resources 
should be adequate to provide potential new customers with a fair share 
entitlement of Federal resources. Fair share amounts of capacity and 
energy will be offered to new customers meeting the requirements 
established in the Post-89 Marketing Criteria and to qualifying Indian 
tribes within the SLCA/IP marketing area. Indian tribes need not have 
utility status to qualify for an allocation. In addition to the 
adjustment in long-term firm resources in 2004, resource commitments 
may be reduced on October 1, 2009, and October 1, 2014, upon 2 years 
written notification. These resource adjustments would provide an 
additional amount of power for the same purposes as the 2004 
adjustment.
    Adjustments may also be made in resource allocations at any time to 
reflect changes in dam operations and/or water conditions upon 5 years 
notification.
    Western is seeking comments on the appropriateness of the length of 
extension offered and on what percentage of the SLCA/IP resource should 
be extended to the SLCA/IP long-term, firm power customers. In addition 
Western requests comments on the uses that should be made of the 
electrical power resource pool that will be created. Following the 
public comment period, Western will analyze the comments received and 
publish its policy regarding extension of resource commitments in the 
Federal Register.

NEPA COMPLIANCE: Western will comply with NEPA through preparation of 
appropriate NEPA documentation of the impacts of the proposal.

DETERMINATION UNDER EXECUTIVE ORDER 12866: DOE has determined that this 
is not a significant regulatory action because it does not meet the 
criteria of Executive Order 12866, 58 FR 51735. Western has an 
exemption from centralized regulatory review under Executive Order 
12866; accordingly, no clearance of this notice by the Office of 
Management and Budget (OMB) is required.

    Issued in Washington, DC on February 19, 1997.
Joel K. Bladow,
Assistant Administrator.
[FR Doc. 97-4693 Filed 2-25-97; 8:45 am]
BILLING CODE 6450-01-P