[Federal Register Volume 78, Number 250 (Monday, December 30, 2013)]
[Notices]
[Pages 79444-79446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-31220]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Loveland Area Projects--2025 Power Marketing Initiative
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Final 2025 Power Marketing Initiative.
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SUMMARY: Western Area Power Administration (Western), Rocky Mountain
Region, a Federal power marketing agency of the Department of Energy
(DOE), announces the 2025 Power Marketing Initiative (2025 PMI). The
2025 PMI provides the basis for marketing the long-term firm
hydroelectric resources of the Loveland Area Projects (LAP) beginning
with the Federal fiscal year 2025. Western's Firm Electric Service
(FES) contracts associated with the current marketing plan expire
September 30, 2024. The 2025 PMI extends the current marketing plan,
with amendments to key marketing plan principles.
Western's proposed 2025 PMI was published in the Federal Register
on October 17, 2011. Responses to public comments are included in this
notice. This Federal Register notice is published to announce Western's
decisions for the 2025 PMI.
DATES: The 2025 PMI will become effective January 29, 2014.
ADDRESSES: Information regarding the 2025 PMI, including comments,
letters, and other supporting documents made
[[Page 79445]]
or retained by Western for the purpose of developing this 2025 PMI, are
available for public inspection and copying at Western Area Power
Administration, Rocky Mountain Region, 5555 East Crossroads Boulevard,
Loveland, CO 80538-8986.
FOR FURTHER INFORMATION CONTACT: Mr. John C. Gierard, Hydraulic
Engineer, Western Area Power Administration, Rocky Mountain Region,
5555 East Crossroads Boulevard, Loveland, CO 80538-8986, telephone
(970) 461-7445, email [email protected].
SUPPLEMENTARY INFORMATION:
Current Marketing Plan Background
The Post-1989 General Power Marketing and Allocation Criteria
(Post-1989 Plan) for the Pick-Sloan Missouri Basin Program-Western
Division and the Fryingpan-Arkansas Project (collectively known as
Loveland Area Projects or LAP) was published in the Federal Register
(51 FR 4012, January 31, 1986) and provided the marketing plan
principles used to market LAP firm hydropower resources. The FES
contracts associated with the Post-1989 Plan were initially to expire
September 30, 2004. Subpart C of the Energy Planning and Management
Program (EPAMP) final rule, published in the Federal Register (60 FR
54151, October 20, 1995), extended and amended the Post-1989 Plan.
EPAMP authorized extending the FES contracts associated with the Post-
1989 Plan through September 30, 2024, and established the Post-2004,
Post-2009, and Post-2014 resource pools. The current marketing plan is
inclusive of the Post-1989 Plan as extended and amended by EPAMP and
the Post-2004, Post-2009, and Post-2014 power marketing initiatives.
2025 PMI
Western initiated informal 2025 PMI discussions with LAP FES
customers in the summer of 2011 by holding meetings in the Rocky
Mountain Region. In addition, Western held meetings with Native
American tribal governments in Kansas and Wyoming to initiate
government-to-government consultation with tribal FES customers. The
meetings provided customers the opportunity to review current marketing
plan principles and provide informal input to Western for consideration
in the 2025 PMI proposal. Key marketing plan principles discussed with
FES customers included: Contract Term, Resource Pools, Marketable
Resource, Hydrology and River Operations Withdrawal Provision,
Marketing Area, and Mt. Elbert Pumped-Storage. Customer input for the
2025 PMI proposal supported Western extending the current marketing
plan with amendments to the Contract Term and Resource Pool principles.
Western published its proposed 2025 PMI in the Federal Register (76
FR 64083, October 17, 2011) and initiated a 106-day public comment
period. Public information and comment forums on the proposed 2025 PMI
were held on November 29, 2011, in Loveland, Colorado, and November 30,
2011, in Topeka, Kansas. Western received no oral comments during the
public comment forums and nine comment letters during the public
comment period, which closed at 4 p.m. M.S.T., January 30, 2012.
Western's responses to the comments contained in the public comment
letters are included in this notice. After consideration of public
comments received, Western has decided to finalize the proposed 2025
PMI as published in the Federal Register (76 FR 64083, October 17,
2011).
Response to Comments Regarding the Proposed 2025 PMI
The public comments below regarding the proposed 2025 PMI are
paraphrased for brevity when not affecting the meaning of the
statement(s).
2025 PMI General Comment
Comment: All comments received supported the 2025 PMI proposal.
Further, the comments indicated the 2025 PMI proposal provided
certainty in planning and a sense of energy security.
Response: Western appreciates the support for the 2025 PMI proposal
published in the Federal Register (76 FR 64083, October 17, 2011).
Amended Marketing Plan Principles and Comments
1. Proposed Contract Term: A 30-year contract term would be used
for FES contracts. The FES contract term would begin October 1, 2024,
and expire September 30, 2054.
Comment: All comments Western received supported the proposed 30-
year contract term, although one comment also suggested Western
consider a 40-year contract term. Commenters stated a 30-year contract
term would provide assurance that the customers who have funded needed
capital investments would receive the benefits of that commitment.
Comments further indicated the 30-year contract term would provide
certainty in customer planning; not adversely affect Western's Federal
power program responsibilities; and extend the long standing tradition
of working together.
Response: Western considered a 40-year contract term; however, it
agrees with the comments above and believes the 30-year contract term
strikes the best balance between the customers' need for assurance and
Western's need for flexibility. Western clarifies it will execute
contracts prior to October 1, 2024, committing the LAP resource for a
30-year period from October 1, 2024, and continuing through September
30, 2054.
Western also recognizes and appreciates the customers' unique
contribution in providing funding for needed capital investments in
support of the Federal power program.
2. Proposed Resource Pools: The proposed 2025 PMI provides for
three resource pools of up to 1 percent of the marketable resource
under contract at the time of each reallocation to be available for
eligible new preference entities. Reallocations would occur at the
beginning of the October 1, 2024, contract term and again every 10
years thereafter on October 1, 2034, and October 1, 2044.
Comment: Customers supported the proposed structure and timing of
resource pools stating they will ensure that eligible entities not
currently receiving the benefits of LAP hydropower will be able to seek
an allocation in the future. It also will ensure fairness among
entities through an equitable process.
Response: Western appreciates the customers' support of the
proposed resource pools. The resource pools allow Western to market
allocations of firm power to eligible new preference entities in such a
manner as to promote the most widespread use, in accordance with
Federal Reclamation law.
Extended Marketing Plan Principles and Comments
1. Proposed Marketable Resource: Extend the existing contract rates
of delivery commitments, with associated energy, to existing long-term
FES customers reduced by up to 1 percent for each new resource pool on
October 1, 2024, October 1, 2034, and October 1, 2044.
Comment: Two commenters specifically supported continuation of the
current marketable resource, noting Western worked with the United
States Bureau of Reclamation in analyzing historic hydrologic data to
affirm the viability of the current marketable resource.
Response: Western appreciates the customers' support of its
determination of marketable resource.
2. Proposed Hydrology and River Operations Withdrawal Provision:
[[Page 79446]]
Western would reserve the right to adjust, at its discretion and sole
determination, the contract rate of delivery on 5 years advance written
notice in response to changes in hydrology and river operations.
Comment: It was noted Western's proposed withdrawal provision
fairly reflects the variety of forces that could impact Western's
administration of LAP and would provide Western with the tools to
address any substantial changes in hydrology and river operations.
Response: Western appreciates the customers' support of flexibility
for Western to adjust contract rates of delivery in response to changes
in hydrology and river operations.
3. Proposed Marketing Area: Western would continue the current LAP
marketing area which is the portion of Colorado east of the Continental
Divide; Mountain Parks Electric, Inc.'s service territory in Colorado
west of the Continental Divide; the portion of Kansas located in the
Missouri River Basin; the portion of Kansas west of the eastern borders
of the counties intersected by the 100th Meridian; the portion of
Nebraska west of the 101st Meridian; and Wyoming east of the
Continental Divide.
Comment: Customers supported continuing the current LAP marketing
area and commented that since LAP is a finite and defined resource,
expansion of the marketing area is impracticable.
Response: Western appreciates the customers' support of the
proposed LAP marketing area.
4. Proposed Mt. Elbert Pumped-Storage: Western would extend the
current Mt. Elbert Pumped-Storage contract provisions, which provide
for pumped-storage energy.
Comment: Western received no comments on the proposed Mt. Elbert
Pumped-Storage.
Final 2025 PMI
Western will extend the current marketing plan with amendments to
the Contract Term and Resource Pool principles. The marketing plan
principles that are amended as well as the marketing plan principles
that are extended are as follows:
Amended Marketing Plan Principles
1. Contract Term: Western extends its commitment of the LAP
resource for a 30-year period beginning October 1, 2024, and continuing
through September 30, 2054.
2. Resource Pools: The 2025 PMI provides resource pools of up to 1
percent of the marketable resource under contract at the time for
eligible new preference entities. Reallocations will occur beginning
October 1, 2024, and again every 10 years thereafter (October 1, 2034,
and October 1, 2044).
Extended Marketing Plan Principles
Extension of the current marketing plan includes all provisions and
principles not specifically addressed in the preceding section entitled
``Amended Marketing Plan Principles.'' The following key principles of
the current LAP marketing plan were discussed with FES customers during
the proposed 2025 PMI informal customer input phase and the formal
public information forums and are included below for reference
purposes.
1. Marketable Resource: The contractually committed contract rate
of delivery and associated energy in effect on September 30, 2024, will
be extended subject to up to 1 percent reduction for each of the
resource pools taking effect on October 1, 2024, October 1, 2034, and
October 1, 2044.
2. Hydrology and River Operations Withdrawal Provision: Western
reserves the right to adjust, at its discretion and sole determination,
the contract rate of delivery on 5 years advance written notice in
response to changes in hydrology and river operations.
3. Marketing Area: The LAP marketing area will be the portion of
Colorado east of the Continental Divide; Mountain Parks Electric,
Inc.'s service territory in Colorado west of the Continental Divide;
the portion of Kansas located in the Missouri River Basin; the portion
of Kansas west of the eastern borders of the counties intersected by
the 100th Meridian; the portion of Nebraska west of the 101st Meridian;
and Wyoming east of the Continental Divide.
4. Mt. Elbert Pumped-Storage: The full 200 MW of Mt. Elbert
capacity is included in the LAP capacity allocations. Only flow-through
generation is included in LAP energy allocations, and customers may
schedule capacity without energy. Off-peak energy must be returned to
Western commensurate with any on-peak energy taken.
2025 PMI Procedures Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321-4347 (2007)); 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), Western
has determined this action is categorically excluded from further NEPA
review.
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: December 20, 2013.
Mark A. Gabriel,
Administrator.
[FR Doc. 2013-31220 Filed 12-27-13; 8:45 am]
BILLING CODE 6450-01-P