[Federal Register Volume 63, Number 95 (Monday, May 18, 1998)]
[Notices]
[Pages 27277-27278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13103]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Replacement Resources Methods Report, Grand Canyon Protection Act 
of 1992

AGENCY: Western Area Power Administration (Western), DOE.

ACTION: Notice of availability of replacement resources methods report 
and executive summary.

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SUMMARY: The Secretary of Energy, acting through Western, has the 
responsibility of marketing hydroelectric power generated at Glen 
Canyon Dam Powerplant. Western has been engaged in the Replacement 
Resources Process to identify economically and technically feasible 
methods for replacing power resources that are lost due to long-term 
operational constraints at Glen Canyon Dam Powerplant. Western 
announces the availability of the Replacement Resources Methods Report 
(Report) and the Executive Summary, which satisfies the requirement in 
section 1809 of the Grand Canyon Protection Act (GCP Act) of 1992, 
Title XVIII of Pub. L. 102-575.

ADDRESSES: To request a copy of the Report and/or Executive Summary or 
to provide written comments on the Report, contact: Mr. S. Clayton 
Palmer, Resource and Environmental Analysis Team, CRSP Customer Service 
Center, Western Area Power Administration, P.O. Box 11606, Salt Lake 
City, UT 84147-0606.

FOR FURTHER INFORMATION CONTACT: Samuel D. Loftin, (801) 524-6381.

SUPPLEMENTARY INFORMATION: The Report outlines the economically and 
technically feasible methods that Western will use to evaluate and 
select resources to replace capacity made unavailable (``or lost'') due 
to the adoption of long-term operational criteria for Glen Canyon Dam 
as required by the GCP Act. The Report includes a ``proof-of-concept'' 
analysis of five hypothetical resource options with varying degrees of 
complexity. The methods are consistent with other Western resource 
acquisition policies, such as Western's Principles of Integrated 
Resource Planning (IRP). The methods are also consistent with the Salt 
Lake City Area/Integrated Projects Contract Amendment, the Records of 
Decision in the Salt Lake City Area/Integrated Projects Power Marketing 
Environmental Impact Statement (EIS) and Energy Planning and Management 
Program EIS, Reclamation's Glen Canyon Dam EIS, pertinent Federal 
Energy Regulatory Commission orders,

[[Page 27278]]

and laws affecting DOE, Western, and the Colorado River Storage Project 
(CRSP).
    In the Report, Western provides methods to replace lost capacity 
using spot market, seasonal (6 months), and mid- to long-term (1 year 
or more) resource acquisitions. Western will consult with firm power 
customers periodically about the amount and term of resource 
acquisitions to be made on their behalf, which Western would then 
acquire and deliver to them. Western will evaluate and select resources 
based on criteria broadly defined in the Report and follow a least-cost 
strategy. Greater public involvement and more complex evaluation 
procedures and acquisition methods will be used for long-term 
acquisitions rather than for seasonal acquisitions.
    Western will use a screening tool and a production cost computer 
model to evaluate future resource offers from potential suppliers. The 
Report details how these evaluation tools are applied to evaluate five 
hypothetical resource purchases. These resource alternatives were 
designed to illustrate the screening and evaluation tools' abilities to 
survey and select from among many diverse replacement resource options 
and to consider transmission system constraints and possible solutions. 
The Report concludes that the screening criteria and evaluation tools 
developed will enable Western to select economically and technically 
feasible replacement power resources.

Public Involvement

    Section 1809 of the GCP Act requires the Secretary of Energy to 
consult with representatives of the CRSP power customers, environmental 
organizations, the Colorado River Basin States, and with the Department 
of the Interior in this process. Western published a notice initiating 
the formal, public consultation process on August 8, 1994, at 59 FR 
40357. On October 7, 1994, at 59 FR 51191, Western announced four 
regional public consultation meetings.
    A 20-page, Replacement Resources Information Packet was prepared 
that included Western's process to complete the method identification 
requirement of the GCP Act. On October 20, 1994, Western mailed this 
information packet, along with the text of the October Federal Register 
notice, to 900-plus organizations and individuals on Western's 
Replacement Resources Methods mailing list, including representatives 
of organizations with which Western was required to consult. In 
November 1994, Western held four regional public involvement meetings 
in Salt Lake City, Utah; Denver, Colorado; Phoenix, Arizona; and 
Albuquerque, New Mexico. Comments from organizations and the public 
were accepted through December 19, 1994, the comment deadline.
    Western prepared newsletters in February and October 1995 that 
provided updates on the status of replacement resources activities. 
These newsletters were distributed to Western's mailing list. On April 
30, 1996, at Western's CRSP Customer Service Center's Annual Customer 
Meeting in Salt Lake City, Western provided an update on replacement 
resources activities to CRSP power customers and to representatives of 
the Department of the Interior, Bureau of Reclamation. This update 
included a discussion of public comment received by Western.
    On July 2, 1996, Western published a notice of availability of a 
Draft Methods Report at 61 FR 34433. Notice was made to those entities 
who responded to Western's mailer and wanted information or copies of 
the Draft Report. Western held public consultation meetings at 
Albuquerque, Phoenix, Denver, and Salt Lake City between July 23 and 
July 29, 1996. At these meetings, Western presented the proposed 
replacement resource methods, which will be implemented with the 
Report. A 60-day public comment period closed on September 3, 1996. 
Western mailed a subsequent newsletter in December 1996, updating 
changes implemented by Western from the comments received during the 
public comment period.

Environmental Compliance

    Western will comply with the National Environmental Policy Act of 
1969 through an appropriate level of environmental analysis of the 
impacts of specific replacement resources when such specific resources 
are identified.

Regulatory Requirements

    DOE has determined 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 is required.

    Dated: May 4, 1998.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 98-13103 Filed 5-15-98; 8:45 am]
BILLING CODE 6450-01-P