[Federal Register Volume 87, Number 105 (Wednesday, June 1, 2022)]
[Notices]
[Pages 33148-33151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11476]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Proposed 2025 Provo River Project Marketing Plan

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed 2025 Provo River project marketing plan and 
announcement of public information and comment forum.

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SUMMARY: Western Area Power Administration (WAPA), a federal Power 
Marketing Administration of the Department of Energy (DOE), is seeking 
comments on this proposed 2025 Provo River Project (PRP) Marketing 
Plan, including the general power marketing criteria to be used as the 
basis for marketing the hydroelectric generation of the PRP. The 
current PRP Marketing Plan expires September 30, 2024, and the proposed 
2025 PRP Marketing Plan would take effect October 1, 2024.

DATES: The public comment period on the Proposed 2025 PRP Marketing 
Plan begins June 1, 2022 and ends August 30, 2022. To be assured of 
consideration, WAPA must receive all written comments by the end of the 
comment period.
    WAPA will hold a virtual public information forum about this 
proposed marketing plan on Thursday, June 28, 2022, from 9:30 a.m. to 
12:00 p.m. MDT. The virtual public comment forum is scheduled the same 
day, Thursday, June 28, 2022, beginning at 1:00 p.m. MDT and concluding 
when comments are complete, or no later than 4:00 p.m. MDT. Due to the 
COVID-19 pandemic, neither the public information nor comment forums 
will be held in-person. Information on the virtual meeting may be found 
on the Colorado River Storage Project (CRSP) website at: https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/power-marketing.aspx. 
WAPA will post webinar and dial in information at this link 14 days 
before the scheduled forums.

ADDRESSES: Submit written comments about this proposed marketing plan 
to: Mr. Rodney Bailey, Acting CRSP Manager, CRSP Management Center 
(MC), Western Area Power Administration, 1800 South Rio Grande Avenue, 
Montrose, CO 81401. Comments also may be emailed to <a href="/cdn-cgi/l/email-protection#1b4b69746d7436567a69707e6f72757c5b6c7a6b7a357c746d"><span class="__cf_email__" data-cfemail="fcac8e938a93d1b19d8e97998895929bbc8b9d8c9dd29b938a">[email protected]</span></a> or be faxed to 970-240-6282. All documentation 
developed or retained by WAPA for the purpose of developing the 
proposed marketing plan is available for inspection and copying at the 
CRSP MC.

FOR FURTHER INFORMATION CONTACT: Mr. Randolph Manion, CRSP Contracts 
and Energy Services Manager, <a href="/cdn-cgi/l/email-protection#1d507c737472735d6a7c6d7c337a726b"><span class="__cf_email__" data-cfemail="5518343b3c3a3b15223425347b323a23">[email protected]</span></a>, 720-201-3285. Written 
requests for information should be mailed to CRSP MC at the ADDRESSES 
section.

[[Page 33149]]


SUPPLEMENTARY INFORMATION: WAPA is responsible for marketing power from 
the PRP, which is done independently from the other projects marketed 
by WAPA's CRSP, including the Salt Lake City Area Integrated Projects 
(SLCA/IP), Olmsted Project, and the Falcon-Amistad Project. In addition 
to marketing power from the PRP and other projects, WAPA's CRSP 
operates approximately 2,316 miles of transmission line and associated 
infrastructure related to these federal hydroelectric projects across 
Arizona, New Mexico, Colorado, Utah, and Wyoming. This Federal Register 
notice formally initiates WAPA's public process and request for public 
comments on the proposed 2025 PRP Marketing Plan. WAPA will prepare and 
publish the final 2025 PRP Marketing Plan after public comments on the 
proposed marketing plan are considered. This Federal Register notice is 
not a call for applications. A call for applications from those 
interested in an allocation of PRP power will occur in a future Federal 
Register notice.
    The PRP is a small water development project, with a powerplant, in 
northern Utah. It was authorized by President Franklin D. Roosevelt, in 
part, as a response to the Great Depression and a severe drought that 
devasted Utah's agriculture and threatened municipal water supplies in 
the 1930s. PRP's primary function is to provide irrigation, municipal, 
and industrial water to users in Salt Lake and Utah Counties, Utah. The 
Department of the Interior, Bureau of Reclamation (Reclamation) 
finished construction of the Deer Creek Dam in 1938 and the Deer Creek 
Powerplant in 1958, which included two 2.475-megawatt generators. On 
June 27, 1936, Reclamation signed contract number Ilr-874 making the 
Provo River Water Users' Association (PRWUA) the operator of the dam 
and responsible for repayment of the PRP. The initial investment in the 
power facilities was repaid in 1984 but there are ongoing costs 
associated with operation, maintenance, and replacement (OM&R) of 
equipment. Surplus power revenues may be used to aid the repayment of 
the PRP irrigation investment.
    Between October 15 and April 15, water may be diverted from the 
adjacent Weber River Basin into the Provo River and stored in Deer 
Creek Reservoir for irrigation purposes pursuant to the terms of the 
1938 contract number Ilr-1082 between the PRWUA, PacifiCorp (formerly 
Utah Power and Light Company), and Reclamation, among others. The 
diversion creates a loss of power generation at the Weber Powerplant on 
the Weber River, downstream from the diversion. As a result, 
PacifiCorp, the owner of the Weber Powerplant, is reimbursed for its 
winter energy losses with PRP energy (Weber/Provo Water Exchange). 
During this winter period, PRP generation above the reimbursement 
amount is sold to WAPA's CRSP as non-firm surplus energy; during the 
summer period, PRP generation is sold to WAPA's CRSP as firm energy.

Current Marketing Plan Background

    Under the Final Provo River Project Marketing Plan published in the 
Federal Register November 21, 1994 (59 FR 60007), WAPA markets PRP 
power and energy, independent from the SLCA/IP, to eight preference 
entities including Heber City, Lehi, Springville, Strawberry Electric 
Service District, and Payson through Intermountain Consumers Power 
Association (in 1995, WAPA's contract with Intermountain Consumers 
Power Association was transferred to Utah Associated Municipal Power 
Systems); and Provo, Salem, and Spanish Fork through the Utah Municipal 
Power Agency, hereinafter referred to as Customers.
    Under the current Marketing Plan, PRP is a ``take all, pay all'' 
contractual arrangement, i.e., the annual revenue requirement is not 
dependent upon the amount of marketable energy available each year. 
Customers with an allocation pay their share of all PRP annual OM&R 
costs, including a separate annual payment to Reclamation for the PRP 
irrigation investments, in return for receiving all marketable energy 
produced by PRP each year. For additional information, see the February 
14, 2020 Federal Register Notice announcing the Provo River Project--
Rate Order No. WAPA-189, Provisional Formula Rate PR-2, effective April 
1, 2020, through March 31, 2025, (85 FR 8583) (``WAPA-189'').

Proposed 2025 Provo River Project General Power Marketing Criteria

    In the proposed 2025 PRP Marketing Plan, WAPA proposes to offer a 
resource extension to existing Customers, and to offer a portion of the 
resource to new applicants under the following general marketing 
criteria.
    A. Marketing Area: Due to the relatively small size of the resource 
and its operating characteristics, eligible applicants must be located 
within Utah and Wasatch counties, Utah.
    B. Resource Extension and Resource Pool Allocations: WAPA proposes 
to provide 95 percent of its available energy resource to existing 
Customers and to establish a resource pool up to 5 percent for new 
eligible applicants. WAPA will take into consideration all existing 
federal hydropower allocations an applicant is currently receiving when 
determining each allocation. Eligible applicants who receive an 
allocation from the Deer Creek Powerplant will receive a percentage of 
available annual winter (October-March) and summer (April-September) 
generation rather than fixed quantities of energy; percentages will be 
solely determined by WAPA. Historically, marketable energy has averaged 
23,000,000 kilowatt-hours (kWh), with 15,000,000 kWh generated during 
the summer months, and the remaining 8,000,000 kWh from winter surplus 
energy. Most recently, PRP's five-year net generation average is 
23,500,000 kWh.
    C. Preference Entities: Municipalities, rural electric 
cooperatives, and political subdivisions including irrigation or other 
districts, and other governmental organizations that have electric 
utility status by October 1, 2023, and federally recognized Native 
American tribes are all preference entities in accordance with section 
9(c) of the Reclamation Project Act of 1939, as amended (43 U.S.C. 
485h(c)). A Native American applicant must be an ``Indian Tribe'' as 
that term is defined in section 4 of the Indian Self Determination and 
Education Assistance Act, as amended (25 U.S.C. 5304). ``Electric 
utility status'' means that the entity has responsibility to meet load 
growth, has a distribution system, and is ready, willing, and able to 
purchase federal power from WAPA on a wholesale basis.
    D. Ready, Willing, and Able: Eligible applicants must be ready, 
willing, and able to receive and distribute or use energy from WAPA. 
``Ready, willing, and able'' means the applicant has the facilities 
needed for the receipt of power or has made the necessary arrangements 
for transmission and/or distribution service, and its power supply 
contracts with third parties permit the delivery of WAPA's power.
    E. Eligible Applicants: Eligible applicants must qualify as 
preference entities, in accordance with section 9(c) of the Reclamation 
Project Act of 1939, 43 U.S.C. 485h(c). WAPA will provide allocations 
only to preference entities in the marketing area. WAPA, through a 
separate public process, will determine the amount of energy, if any, 
to allocate in accordance with the marketing criteria and 
administrative discretion under Reclamation Law (e.g., Reclamation Act 
of 1902, 32 Stat. 388, as amended).
    F. Contract Obligations: Eligible applicants that receive an 
allocation must execute electric service contracts

[[Page 33150]]

within 6 months of receiving a contract offer from WAPA, unless WAPA 
agrees otherwise in writing. Furthermore, the applicant must comply 
with all terms and conditions stated within that contract, including 
scheduling, accounting, and billing procedures; Energy Planning and 
Management Program requirements; General Power Contract Provisions; and 
power factor, among others.
    G. Separate Contractual Arrangements with PacifiCorp: Eligible 
applicants that receive an allocation must execute a separate multi-
party agreement among WAPA, Reclamation, Central Utah Water 
Conservation District, PRWUA, and PacifiCorp to ensure repayment of 
energy to PacifiCorp for the loss of power generation due to the Weber/
Provo Water Exchange.
    H. Contract Term: The term of the contract will be 10 years. 
Resource extensions and new allocations would begin on October 1, 2024, 
and remain in effect through September 30, 2034. However, the contract 
will automatically renew for up to two additional 5-year terms, 
commencing on October 1, 2034, and October 1, 2039, respectively, 
unless no later than 3 years before the beginning of an extension (by 
October 1, 2031, and October 1, 2036, respectively), any party to the 
contract gives written notice not to renew. If such notice is given, 
the automatic renewal option will be revoked, and all contracts will 
expire on September 30, 2034, or September 30, 2039, respectively.
    I. Delivery Point: PRP is electrically interconnected to 
PacifiCorp's 138-kilovolt (kV) transmission system (PacifiCorp's 
System). Eligible applicants taking delivery of power from WAPA must do 
so at the PacifiCorp System 138-kV Hale Powerplant Switchyard, South 
Provo Tap, or Spanish Fork Substation. Costs for transmission will be 
paid by the eligible applicants through appropriate contractual 
arrangements.
    J. Transmission Beyond Delivery Point: Any associated 
transformation/transmission beyond the PacifiCorp System 138-kV Hale 
Powerplant Switchyard, South Provo Tap, or Spanish Fork Substation is 
the sole responsibility of the eligible applicants. Eligible applicants 
that receive an allocation must have the necessary arrangements for 
transmission and/or distribution service in place by October 1, 2023.
    K. Regional Transmission Organization: Should PacifiCorp, as the 
balancing authority operator in the PRP area, join a full electricity 
market (e.g., a Regional Transmission Organization and/or an 
Independent System Operator), and in joining that market create an 
unintended delivery point or point of receipt financial impact to the 
PRP and/or other unintended financial impacts, such financial impacts 
will be included as part of the PRP operation expenses, and WAPA will 
work with the Customers in good faith in an attempt to minimize those 
financial impacts.
    L. Rates and Payment: PRP is a ``take all, pay all'' project. This 
means the annual revenue requirement does not depend on the amount of 
energy available each year. Each eligible applicant that receives an 
allocation will receive a proportional share of the energy and will 
annually pay a proportional share of the OM&R expenses, including a 
separate annual payment to Reclamation for the PRP irrigation 
investments, in 12 monthly installments. For additional information, 
see Rate Order No. WAPA-189.

Legal Authority

    WAPA is responsible for marketing the federal power produced by the 
PRP, as well as the other participating projects of CRSP, in accordance 
with the following Acts of Congress: Reclamation Act of June 17, 1902 
(Pub. L. 57-161) (32 Stat. 388), Provo River Project of December 5, 
1924 (43 Stat. 701), Revision of the Reclamation Act of August 4, 1939 
(Pub. L. 76-260) (53 Stat. 1187), Colorado River Storage Project Act of 
April 11, 1956 (Pub. L. 84-485) (70 Stat. 105), Department of Energy 
Organization Act of August 4, 1977 (Pub. L. 95-91) (91 Stat. 565), as 
amended.

Availability of Information

    Documents developed or retained by WAPA during this public process 
will be available on CRSP's website, by appointment, for inspection and 
copying at the CRSP MC at the ADDRESSES Section above. Written comments 
received as part of the Proposed 2025 PRP Marketing Plan formal public 
process will be available for viewing on CRSP's website.

Regulatory Procedure Requirements

A. Review Under the National Environmental Policy Act (NEPA)

    WAPA has determined that this proposed action fits within the 
categorical exclusion listed in appendix B to subpart D of 10 CFR part 
1021 (B4.1 Contracts, policies, and marketing and allocation plans for 
electric power). Categorically excluded projects and activities do not 
require preparation of either an environmental impact statement or an 
environmental assessment.\1\ Specifically, WAPA has determined that 
this rulemaking is consistent with activities identified in part B4, 
Categorical Exclusions Applicable to Specific Agency Actions (see 10 
CFR part 1021, appendix B to subpart D, part B4). A copy of the 
categorical exclusion determination is available on CRSP's website at: 
https://www.wapa.gov/regions/CRSP/environment/Pages/environment.aspx.
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    \1\ The determination was done in compliance with NEPA (42 
U.S.C. 4321-4347); the Council on Environmental Quality Regulations 
for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA 
Implementing Procedures and Guidelines (10 CFR part 1021).
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B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA) 5 U.S.C. 601 et seq., 
requires a federal agency to perform a regulatory flexibility analysis 
whenever the agency is required by law to publish a general notice of 
proposed rulemaking for any proposed rule, unless the agency can 
certify that the rule will not have a significant economic impact on a 
substantial number of small entities. For purposes of the RFA, a 
``rule'' does not include ``a rule of particular applicability relating 
to rates [and] services . . . or to valuations, costs or accounting, or 
practices relating to such rates [and] services . . .'' 5 U.S.C. 601. 
WAPA has determined that this action relates to services offered by 
WAPA and, therefore, is not a rule within the purview of the RFA.

C. Determination Under Executive Order 12866

    WAPA 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.

D. Review Under Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (44 U.S.C. 3501, et 
seq.), WAPA has received approval from the Office of Management and 
Budget to collect applicant profile data, under OMB control number 
1910-5136.

Signing Authority

    This document of the Department of Energy was signed on [DATE], by 
Tracey A. LeBeau, Administrator, Western Area Power Administration, 
pursuant to delegated authority from the Secretary of Energy. That 
document, with the original signature and date, is

[[Page 33151]]

maintained by DOE. For administrative purposes only, and in compliance 
with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on May 24, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-11476 Filed 5-31-22; 8:45 am]
BILLING CODE 6450-01-P


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