[Federal Register Volume 76, Number 125 (Wednesday, June 29, 2011)]
[Notices]
[Pages 38146-38148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-16308]
[[Page 38146]]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Revision to the Final Principles of Integrated Resource Planning
for Use in Resource Acquisition and Transmission Planning
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice; request for comment.
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SUMMARY: Western Area Power Administration (Western) published proposed
Principles for Integrated Resource planning (IRP) for use in its
acquisition of resources (supply-side and demand-side) and transmission
planning in the Federal Register on December 6, 1994. After considering
public comments on the proposed principles, Western adopted the Final
Principles of IRP under which project-specific resource acquisition and
transmission planning principles would be developed. The Final
Principles of IRP were published in the Federal Register on June 9,
1995, and became effective on July 10, 1995.
Through this notice, Western is requesting comments on the proposed
Western-wide evaluation criteria and procedures that Western will use
for future resource acquisitions instead of the current principle,
which calls for developing project-by-project criteria. Western is also
requesting comments on its proposal to eliminate the transmission
planning principles set forth in the Final Principles of IRP.
DATES: Western must receive written comments on the proposed revision
to the Final Principles of IRP at the address below by 4 p.m., MDT, on
July 29, 2011. Western reserves the right not to consider any comments
received after the prescribed date and time.
Western will hold a public meeting to solicit input on Western's
revision to the Final Principles of IRP for Use in Resource Acquisition
and Transmission Planning. The meeting will address the proposed
evaluation criteria and procedures Western will use for long-term
resource acquisition and the elimination of the transmission planning
principles as set forth in the Final Principles of IRP. The public
meeting will be held on: July 21, 2011, 8:30 a.m., MDT, in Lakewood,
Colorado. The meeting will also be available by conference call and
webcast during that time.
ADDRESSES: Submit written comments regarding this proposed Revision to
the Final Principles of IRP to Ms. Julia L. Kyriss, Colorado River
Storage Project (CRSP) Manager, CRSP Management Center, 150 East Social
Hall Avenue, Suite 300, Salt Lake City, Utah 84111-1580. Comments may
also be e-mailed to [email protected] or faxed to (801) 524-
5017.
The public meeting location will be the Western Area Power
Administration, Corporate Services Office, 12155 West Alameda Parkway,
Lakewood, Colorado.
FOR FURTHER INFORMATION CONTACT: Ms. Paula Fronk, CRSP Management
Center, Western Area Power Administration, 150 East Social Hall Avenue,
Suite 300, Salt Lake City, Utah 84111-1580, telephone (801) 524-6383,
e-mail [email protected].
SUPPLEMENTARY INFORMATION: A public process to develop principles of
IRP for Western resource acquisition and transmission planning began
with publication of draft principles of IRP in the Federal Register on
December 6, 1994 (59 FR 62724). A public information and comment forum
was held in Denver, Colorado, on January 12, 1995, to explain the
proposed principles and receive comments on the proposal. Written
comments on the proposal were received through March 7, 1995. The Final
Principles of IRP were published in the Federal Registeron 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 certain Western
projects to increase transmission capability. Western's current Final
Principles of IRP are available at: http://www.wapa.gov/powerm/pmirpwestern.htm.
Western believes it is necessary to define further the process for
acquiring project-specific, long-term resources by establishing
evaluation criteria to be used when considering the purchase of new
generation resources and eliminating the principles set forth in the
Final Principles of IRP associated with transmission planning.
Western's historic resource acquisitions have been primarily
project-specific, short-term purchases of supplemental resources to
firm variable hydropower generation. For long-term resource
acquisition, Western believes developing evaluation criteria and
procedures that will be used for future resource acquisition represents
prudent planning. The ability to make long-term purchases expeditiously
when the need arises, whether due to the unavailability of generation
from Federal hydropower facilities or lost generation attributable to
drought conditions, this provides Western greater flexibility in
securing adequate and reliable power to meet obligations to its
customers. The criteria Western is proposing are set forth in more
detail later in this notice.
For transmission planning, Western believes that existing
stakeholder involvement in its planning efforts used by regional and
sub-regional planning entities and its Open Access Transmission Tariff
(OATT) render the requirement set forth in the Final Principles of IRP
redundant and unnecessary. The Final Principles of IRP applicable to
Western's transmission planning principles do not deal with new
generation resources, but apply only to new or upgraded transmission
facilities over a defined threshold. Through the planning efforts
outlined below, Western will meet the intent of the Final Principles of
IRP and its other planning obligations.
Since finalizing the Final Principles of IRP for transmission
planning in 1995, the transmission industry has undergone significant
change. Several of the original comments Western received during the
public process to develop the Final Principles of IRP requested that
Western avoid the duplication of efforts related to transmission
planning. At the time the Final Principles of IRP were adopted,
however, 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 OATT, as described below,
Western now believes that those original comments have merit, and the
transmission planning principles established under the Final Principles
of IRP can be eliminated.
Specifically, Western is actively involved in several transmission
planning efforts throughout its various regions. For example, Western
is currently participating in WestConnect, Southwest Area Subregional
Planning Transmission Group, Colorado Long-Range Transmission Planning
Group, California Transmission Planning Group, Sierra Subregional
Planning Group, 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 15 years, these planning entities have emerged to
provide stakeholders the opportunity to become involved in regional
integrated transmission planning, including projects that would result
in increasing Western's transmission capacity.
[[Page 38147]]
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 non-discriminatory access to its transmission facilities,
and (3) identifying and promoting new investments in transmission
infrastructure in a coordinated, open and 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 neighbors, sponsors of transmission,
generation and demand-side management developers, and other
stakeholders to participate in all stages of development of Western's
transmission plan.
Lastly, Western engages in annual 5- or 10-year transmission
planning activities and, in some regions, joint planning activities
with its customers. These efforts are meant to 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.
Scope: The proposed revised Final Principles of IRP will apply
specifically to resource acquisitions involving a commitment to make
recurring purchases over a period longer than 5 years. Final Principles
of IRP do not apply to purchases made for 5 years or less and the Lease
of Power Privilege under Reclamation Law (Town Sites and Power
Development Act of 1906 (43 U.S.C. 522) and Reclamation Project Act of
1939 (43 U.S.C. 485h(c)). Western does not propose to change these
approaches through this proposal. Western is proposing to define
further the criteria and procedures used in acquiring resources for
terms of longer than 5 years under the Final Principles of IRP as
outlined in Resource Acquisition Principles 2 and 3. Western is not
proposing any changes to Resource Acquisition Principles 1, 4, 5, and
6. Western is also proposing to eliminate the transmission planning
principles set forth in the Final Principles of IRP.
Request for Public Comment
(A.) Western Is Requesting Public Comment on the Following Proposed
Procedures and Evaluation Criteria for Long-Term Resource Acquisition
Which, if Adopted, Would Be Included in a Revision to the Existing
Final Principles of IRP
1. The Western office responsible for marketing power from a
specific project will identify the need for a long-term resource
acquisition. The need could be due to occurrences such as, but not
limited to, the unavailability of generation from Federal hydropower
facilities initially included in an existing marketing plan, generation
lost due to drought conditions impacting water availability, and
modifications in normal reservoir operations.
2. Once the resource need is identified and the initial amount(s)
are determined, the project-specific customers involved will be
notified and offered an opportunity to discuss this planned
acquisition. Western will pursue widespread publication for the
resource acquisition solicitation, which may include posting on Web
sites, publishing in the Federal Register or in newsletters, or using
other media to reach potential suppliers.
3. The solicitation will request potential suppliers to submit
proposals that address the evaluation criteria described below, to the
extent such criteria apply.
4. To the extent applicable, Western will screen the proposals
received that best meet the criteria set forth below.
5. When evaluating potential resource acquisitions under the Final
Principles of IRP, the following evaluation criteria will be
considered:
a. Cost--the amount paid to acquire resources, such as purchased
power, fuel, plant and equipment, or labor services.
b. Dependability--a supplier's ability to provide power as
specified in a purchase power solicitation. A supplier is considered
dependable when it delivers to the contracted location, in the
contracted amount, at the contracted time, and in the contracted
manner.
c. Dispatchability--the ability of a utility to schedule and
control, directly or indirectly, manually or automatically, the
resources under consideration.
d. Diversity--an acceptable level of both the mix of generation
resources in the region's overall blend of power provided to a customer
and the mix of generation sources of the supplier.
e. Environmental impact--the degree to which the resource has an
impact on the human environment. Impacts vary according to: (1) The
type of resource purchased (supply-side, demand-side, or renewable),
(2) the length of the purchase, (3) the geographical area from which
the power is purchased, and (4) the transmission path(s) used to get to
the contracted location.
f. Indian Preference--Under section 2602(d) of the Energy Policy
Act of 1992 (as amended by the Energy Policy Act of 2005), in
purchasing any energy product or by-product, a Federal agency or
department may give preference to an energy and resource production
enterprise, partnership, consortium, corporation, or other type of
business organization the majority of the interest in which is owned
and controlled by one or more Indian Tribes. In carrying out this
subsection, a Federal agency or department will not pay more than the
prevailing market price for an energy product or by-product or obtain
less than prevailing market terms and conditions.
g. Renewable Energy Resource--the electric energy that is generated
from solar, wind, biomass, land-fill gas, ocean (including tidal, wave,
current, and thermal), geothermal, municipal solid waste, or new
hydroelectric generation capacity achieved from increased efficiency or
additions of new capacity at an existing hydroelectric project and is
physically delivered to the grid.
h. Risk--the potential impact of market uncertainties, including a
supplier's financial condition and creditworthiness. A supplier shall
be required to demonstrate adequate financial and physical resources to
provide capacity and energy to meet Western's requirements during the
term of the contract.
i. Transmission Availability--the ability to move or transfer
electric energy over an interconnected group of lines between points of
supply and points of delivery to Western's system.
j. Transmission Losses--the reduction in available electricity
after being transmitted over transmission lines and/or facilities from
the generation source to the contracted delivery location.
(B.) Western Is Requesting Public Comment on Its Proposal To Eliminate
the Transmission Planning Principles From the Existing Final Principles
of IRP
Western is proposing to eliminate the existing transmission
planning principles contained in the Final Principles of IRP published
in the Federal Register on June 9, 1995 (60 FR 30533). Western will
accomplish the original objectives of the transmission planning
principles through use of existing planning groups and its OATT as
discussed in more detail above.
[[Page 38148]]
PROCEDURES REQUIREMENTS
Environmental Evaluation
Western's proposal to better define evaluation criteria and
procedures for resource acquisition is an administrative action covered
by an existing NEPA categorical exclusion. A categorical exclusion has
been prepared and executed for this process. Once project-specific
actions are identified under the Final Principles of IRP and the final
evaluation criteria developed through the process defined, those
actions would be individually subject to the appropriate level of NEPA
review. Factors affecting the level of NEPA review include whether the
project-specific 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 notice by the
Office of Management and Budget is required.
Dated: June 22, 2011.
Timothy J. Meeks,
Administrator.
[FR Doc. 2011-16308 Filed 6-28-11; 8:45 am]
BILLING CODE 6450-01-P