[Federal Register Volume 82, Number 156 (Tuesday, August 15, 2017)]
[Notices]
[Pages 38675-38685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17210]
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DEPARTMENT OF ENERGY
Western Area Power Administration
2025 Power Marketing Plan
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of final plan.
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SUMMARY: The Department of Energy (DOE), Western Area Power
Administration (WAPA), announces its final 2025 Power Marketing Plan
(Marketing Plan) for the Sierra Nevada Region (SNR). On December 31,
2024, all of SNR's long-term power sales contracts will expire. This
notice responds to comments received on the Proposed 2025 Power
Marketing Plan (Proposed Plan) and sets forth the Marketing Plan. The
Marketing Plan specifies the terms and conditions under which WAPA will
market power from the Central Valley Project (CVP) and the Washoe
Project beginning January 1, 2025. This Marketing Plan supersedes all
previous marketing plans for these projects. WAPA will offer new
contracts for the sale of power to existing customers as more fully
described in the Marketing Plan. Entities who wish to apply for a new
allocation of power from WAPA, and who meet the criteria defined in the
Marketing Plan, should submit formal applications. Application
procedures will be set forth in the Call for 2025 Resource Pool
Applications in a separate Federal Register notice to be published
after the Marketing Plan is applicable.
DATES: The Marketing Plan will become applicable September 14, 2017 in
order to make power allocations and complete the other processes
necessary to begin providing services on January 1, 2025.
FOR FURTHER INFORMATION CONTACT: Ms. Sonja Anderson, Vice President of
Power Marketing, Sierra Nevada Customer Service Region, Western Area
Power Administration, 114 Parkshore Drive, Folsom, CA, 95630-4710, by
email at [email protected], or by telephone (916) 353-4421. Information
on development of the Marketing Plan can be found at https://www.wapa.gov/regions/SN/PowerMarketing/Pages/2025-Program.aspx.
SUPPLEMENTARY INFORMATION:
Development of the 2025 Power Marketing Plan
WAPA currently markets power from the CVP and the Washoe Project
under long-term contracts to approximately 80 preference customers in
northern and central California and Nevada. On December 31, 2024, all
of SNR's long-
[[Page 38676]]
term power sales contracts will expire. This notice sets forth WAPA's
Marketing Plan and responds to comments received on the Proposed Plan.
The Marketing Plan specifies the terms and conditions under which WAPA
will market power from CVP and the Washoe Project beginning January 1,
2025. This Marketing Plan supersedes all previous marketing plans for
these projects.
CVP power facilities include 11 powerplants with a maximum
operating capability of about 2,113 megawatts (MW) and an estimated
average annual generation of 4.6 million megawatthours (MWh). The
Washoe Project, Stampede Powerplant has a maximum operating capability
of 3.65 MW with an estimated annual generation of 10,000 MWh.
To deliver CVP power, WAPA owns the 94 circuit-mile Malin-Round
Mountain 500-kilovolt (kV) transmission line (an integral part of the
Pacific AC Intertie (PACI)), the 84 circuit-mile Los Banos-Gates No. 3
500-kV transmission line, 803 circuit miles of 230-kV transmission
line, 7 circuit miles of 115-kV transmission line, and approximately 63
circuit miles of 69-kV and below transmission line. WAPA also has
partial ownership in the 342-mile California-Oregon Transmission
Project (COTP) 500-kV transmission line. Many of WAPA's existing
customers have no direct access to WAPA's transmission lines and
receive service over transmission lines owned by other utilities. The
Washoe Project is not directly connected to the CVP. Sierra Pacific
Power Company (SPPC) owns and operates the only transmission system
available for access to the Washoe Project.
The following table lists a range of estimated CVP and Washoe
Project power resources and adjustments. This table is for
informational purposes only and does not imply the power resources and
adjustments shown will be the actual amounts available or adjustments
applied.
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Estimated CVP power resources and adjustments prior to first preference
entitlements and base resource allocations
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Power resources/adjustment Range/value
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Annual energy generation................... 2,400,000-8,600,000 MWh.
Monthly energy generation.................. 87,000-1,100,000 MWh.
Monthly capacity........................... 360-1,900 MW.
Annual project use......................... 334,000 MWh-1,670,000 MWh.
Monthly project use........................ 10,000-180,000 MWh.
Monthly project use (on peak).............. 30-360 MW.
Monthly maintenance........................ 0-300 MW.
Reserves--hydro............................ minimum 5% of monthly
capacity.
CVP transmission and transformation losses 1.6%.
from the generator bus to a 230-kV load
bus.
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WAPA began developing the Marketing Plan with a series of three
informal public information meetings. These meetings helped WAPA
identify pertinent issues, including contract provisions and
methodologies for creating resource pools.
WAPA subsequently published its Proposed Plan (81 FR 27433, dated
May 6, 2016). WAPA held a public information forum on June 1, 2016, to
present the Proposed Plan and answer questions. On July 12, 2016, WAPA
held a public comment forum to accept verbal comments, and accepted
written comments from the public through August 4, 2016. WAPA
considered the comments received in developing the Marketing Plan.
Responses to Comments Received on the Notice of Proposed Plan
During the public consultation and comment period, WAPA received 13
letters commenting on the Proposed Plan. In addition, six customers and
interested stakeholder representatives commented during the July 12,
2016, public comment forum. In preparing the Marketing Plan, WAPA
reviewed and considered all comments received during the public
consultation and comment period.
The following is a summary of the comments received during the
consultation and comment period, and WAPA's responses to those
comments. Comments are grouped by subject and paraphrased for brevity.
Specific comments are used for clarification where necessary.
I. Marketing Plan Term
Comment: All commenters supported the 30-year term; however,
several stated without some additional balancing of the termination
provisions and/or the rate procedures, the additional term could result
in cost or risk exposure that negatively impacts Base Resource
customers. Additionally, Base Resource customers will be exposed to
increased risks due to the take-or-pay nature of the power contracts
unless WAPA includes reduction and early termination provisions.
Response: Please see WAPA's response under Termination and
Reduction Provisions for a response to the reduction and early
termination portion of these comments.
II. Marketable Resource--Base Resource
Comment: Two commenters stated WAPA should explicitly define the
Base Resource and list all applicable attributes including energy,
capacity, ancillary services, reserves, transmission and environmental
attributes.
Response: WAPA has modified the definition of Base Resource in the
Marketing Plan to clarify that power includes capacity and energy.
Transmission is not an attribute of the Base Resource. It is the
customers' responsibility to secure any necessary transmission service;
however, WAPA will provide transmission service to deliver the Base
Resource on the CVP system. The definition continues to include
ancillary services reserves, and environmental attributes.
Comment: A commenter stated it understands that Project Use, First
Preference, maintenance, reserves, and system and transmission losses
are subtracted from the CVP generation prior to determining the Base
Resource available. The commenter asked if there were any other
existing or new obligations on the CVP resource that should be
explicitly identified in the Marketing Plan.
Response: At this time, there are no additional obligations on CVP
power resources other than those listed.
Comment: A commenter stated WAPA should determine the amount of
Base Resource available in an equitable manner, and not by which
balancing authority area the customers are located. WAPA can improve
the equity by considering all aspects of its CVP portfolio of assets,
including generation,
[[Page 38677]]
capacity, ancillaries, and transmission assets.
Response: The Marketing Plan defines Base Resource and allocates
Base Resource to each preference customer based on the preference
customer's percentage. WAPA does not consider a customer's balancing
authority area when determining the amount of Base Resource available.
Comment: A commenter encouraged greater efforts by WAPA and the
U.S. Department of the Interior, Bureau of Reclamation (Reclamation) to
consider measures to increase the value and flexibility of the Base
Resource.
Response: WAPA will continue to work with Reclamation to maximize
the value of the Base Resource.
III. Marketable Resource--Custom Products
Comment: Several commenters supported offering Custom Products. The
commenters stated that WAPA's commitment to explore requested Custom
Products provides needed certainty and possible additional
opportunities for customers to explore new uses for the Base Resource
and transmission assets. The commenters further stated that WAPA's
process for establishing Custom Products involves appropriate customer
input, and ensures that WAPA's other customers may even benefit
indirectly from the offering of Custom Products. The commenters also
stated that Custom Products improve the value of the Base Resource to
all customers. The customers support all costs incurred being paid by
those customers contracting for such Custom Products.
Response: WAPA will continue to offer Custom Products with all
costs incurred paid by those customers contracting for those products
and/or services.
Comment: A commenter encouraged WAPA to identify the Custom
Products being offered to customers, including the product terms and
cost, and to increase the visibility and availability of the price and
terms and conditions of Custom Products. The commenter suggested that
WAPA provide periodic reports on the Custom Products used by preference
customers, including data on prices, terms, and conditions for all
products.
Response: WAPA anticipates it will continue to offer Full Load,
Variable Resource, and Scheduling Coordinator Services. WAPA is open to
assisting customers with their electric service needs under a Custom
Product contract if WAPA is able to do so. Custom Products will
initially be offered for 5-year terms. The cost for such products and
services will be on a pass-through basis. WAPA will not know what other
products or services it may provide until those services are requested,
nor will WAPA know the cost of any Custom Products until those services
are determined, along with the number of customers participating in
those services, and other relevant parameters. At such time as the
pricing, terms and conditions related to Custom Products is no longer
considered proprietary and/or market sensitive, WAPA may provide it
upon request.
Comment: A commenter asked WAPA to clarify how it will carry out
the collaborative process to ensure all stakeholder perspectives are
considered.
Response: Custom Products are any product or service requested by
an individual customer or group of customers. These products or
services will be mutually negotiated between a specific customer or a
specific group of customers and WAPA.
Comment: A commenter stated that, to the extent the Custom Products
offered reduce the value of the Base Resource to other preference
customers by reducing the availability of electricity, capacity,
reserves, ancillary services, transmission and/or environmental
attributes, the beneficiary should pay for the value of the displaced
Base Resource. WAPA should modify the Marketing Plan to clearly define
the Custom Products that could reduce power and transmission available
for Base Resource generation before all customers are asked to execute
a contract in 2020.
Response: Custom Products do not include the Base Resource or CVP
generation. Custom Products are meant to enhance the Base Resource for
those customers that may need additional services from WAPA to maximize
the benefit from the Base Resource. WAPA provides transmission with the
Base Resource; therefore, Custom Products do not affect the
availability of transmission for Base Resource delivery.
Comment: If WAPA is providing a service or facility for voltage
support or some similar benefit to a specific entity, according to
WAPA's Open Access Transmission Tariff (OATT), the costs for such a
project must be paid by that individual entity. If WAPA does not follow
its own OATT and allocates these costs to other entities, these other
entities must be authorized an off-ramp.
Response: All costs associated with providing Custom Products are
passed to those customers requesting Custom Products. If a Custom
Product involves services under WAPA's OATT, the customer will take and
pay for those services under the OATT.
IV. Exchange Program
Comment: A commenter supported the hourly and seasonal exchange
programs provided that they are administered and implemented fairly
whereby all who can share in the benefits of Base Resource can do so
without taking on additional burdens.
Response: WAPA intends to develop the exchange program with input
from the customers and the public to maximize the benefits and lessen
any burdens associated with exchange program participation. The
exchange program is an optional program.
V. Extension of the Resource
Comment: Several commenters support extending 98 percent of the
Base Resource to existing customers.
Response: WAPA will extend 98 percent of the Base Resource to
existing customers as specified in the Marketing Plan.
Comment: A commenter stated WAPA should allow existing customers to
take less than 98 percent of their current Base Resource percentage.
Response: WAPA will allow an existing customer to reduce its base
resource percentage allocation under this Marketing Plan with at least
six months' written notice to WAPA prior to January 1, 2025.
Comment: A commenter supported limiting allocations to no more than
100 percent of load, but suggested using consistent data to determine
load between existing and new customers.
Response: A customer should not have an allocation larger than its
load. Reviewing a 5-year period of energy consumption for existing
customers is appropriate so an existing customer is not unduly harmed
due to unusual factors (drought, environmental impacts, etc.) that may
affect their load for just one year.
VI. Resource Pools
Comment: Several commenters support creating the resource pools;
the calculation methodology to create the resource pools; and the 2 and
1 percent resource pools in 2025 and 2040, respectively, which are
sufficient to broaden the preference customer base without overly
penalizing existing customers.
Response: WAPA acknowledges the comment.
Comment: Two commenters stated the Marketing Plan should have a
provision to address how WAPA will manage returned allocations from
customers that either do not opt for new power contracts or exercise
early termination. A commenter recommends that
[[Page 38678]]
surrendered or excess allocations (where load exceeds allocations) be
offered to existing customers on a pro rata basis. Another commenter
supports returning all surrendered allocations to existing customers,
even if that amount is beyond 2 percent.
Response: The Marketing Plan states that surrendered allocations
will be returned to existing customers on a pro rata basis, up to 100
percent of each existing customer's pre-2025 allocations. WAPA will not
allocate Base Resource above an existing customer's pre-2025 allocation
unless that existing customer applies for an additional allocation
because some existing customers may neither need nor want more Base
Resource. Any Base Resource available after returning existing
customers to 100 percent of their pre-2025 allocations will be included
in the resource pool. Any Base Resource available from excess
allocations, which WAPA believes will be minimal, will also be included
in the resource pool. Existing customers interested in receiving
additional Base Resource are encouraged to apply for a resource pool
allocation. This same process will be used for the 2040 resource pool.
VII. Allocation Criteria
Comment: A commenter stated the Northern California Power Agency
members with small allocations due to prior withdrawals should receive
at least equal consideration with Native American tribes.
Response: WAPA will consider all applications received in response
to the Calls for Applications. It is WAPA's policy to provide
assistance to Native American tribes consistent with 25 U.S.C. 3505.
Comment: A commenter stated that under the Proposed Plan, a new
customer could potentially receive up to 2 percent of the Base Resource
in 2025 if additional customers are not available to split the resource
pool. The commenter stated that if there are not enough new customers
to fully subscribe to the 2 percent offering, the remaining share of
the Base Resource product that is not allocated to a new customer can
then be distributed to existing customers. The commenter also stated
that existing customers could still potentially receive less than 1
percent of the Base Resource if several existing customers sign up to
receive a share of unsubscribed Base Resource in the resource pool for
new customers.
Response: WAPA has not determined how much Base Resource will be
allocated to any allottee or group of allottees, which would include
new allottees or increases in existing customers' allocations. Existing
customers may apply for additional Base Resource.
Comment: A commenter said the allocation methodology states the
allocation of Base Resource ``will be based on applicant's load during
the calendar year prior to the Call for Applications or the amount
requested, whichever is less.'' The commenter advocated establishing
this load ratio share benchmark to determine which existing customers'
Base Resource allocations exceed their load ratio share and subjecting
only those excess allocations to the 2 percent reduction to establish
the resource pool. Those existing customers whose Base Resource
allocations fall below the benchmark would not be subject to the 2
percent reduction and would also be eligible for participation in the
resource pool.
Response: WAPA considered several different methodologies to create
the Resource Pools, including reducing only a subset of existing
customers' allocations. After reviewing the comments received during
informal stakeholder meetings, WAPA determined it would treat all
customers equally by reducing the existing customers' allocation by 2
percent and 1 percent to create the 2025 and 2040 Resource Pools,
respectively.
Comment: A commenter strongly encouraged development of minimum
threshold criteria to ensure that the existing customers are not
disadvantaged by the resource pool and that the resource value is not
weakened or jeopardized by new customers. The commenter encouraged
setting standards or carefully monitoring the resource pool process to
ensure the resource is being used consistent with the project purposes.
Response: The Marketing Plan sets forth the eligibility criteria
necessary to be met to qualify for an allocation of Federal power. The
criteria apply to both existing and new customers. All new and existing
customers will execute the same electric service contract and are bound
by the same terms and conditions.
Comment: A commenter was concerned by the proposal to allow only
those customers who have a load ratio share below 25 percent to receive
additional allocations under the resource pool. The commenter
understands the intent to avoid allocating additional Base Resource to
entities who already have large allocations; however, the commenter
stated the 25 percent threshold is somewhat arbitrary and that a set
threshold neglects consideration of customers' socio-economic
conditions or technical issues.
Response: In an informal public information meeting, WAPA proposed
only existing customers whose allocation meets less than 25 percent of
their load could apply for an additional allocation of Base Resource.
Several stakeholders stated concerns with that proposal. Based on those
concerns, the Marketing Plan does not contain a threshold. Any existing
customer can apply for a resource pool allocation.
VIII. General Criteria and Contract Principles
Comment: Section V.B. states that ``Allocation percentages are
subject to adjustment.'' A commenter stated the circumstances of such
an adjustment need to be specified so customers have an understanding
of the nature of their commitment to an allocation. WAPA should clarify
that Base Resource percentage adjustments will only be made in very
limited circumstances, such as by customer termination or reduction, or
when a customer no longer exists.
Response: WAPA agrees there are limited circumstances when Base
Resource percentages may be adjusted as defined by the Marketing Plan.
For instance, existing customers' Base Resource percentages may be
increased if one or more existing customers reduce their Base Resource
percentage or terminate their contracts prior to 2025. All customers'
Base Resource percentages will be reduced for the 2040 Resource Pool.
If it is determined that a customer has too large of an allocation, or
is using the Base Resource for purposes other than serving its own
load, that customer's Base Resource percentage may be reduced or
withdrawn. An assignment, or withdrawal of an assignment, also would
cause an adjustment in a customer's Base Resource percentage.
Comment: Section V.I. states ``Contracts will include clauses
specifying criteria that customers must meet on a continuous basis to
be eligible to receive electric service from WAPA.'' Two commenters
stated if WAPA intends to include criteria in the contracts that differ
from the criteria for eligibility for an allocation, then the nature of
the intended ongoing criteria should be explained. WAPA should clarify
the criteria a customer must continue to meet to remain a customer.
Response: The eligibility criteria listed in the Marketing Plan
will remain during the term of the Marketing Plan. However, other
criteria may be required during the 30-year term to maintain
flexibility and adapt to changes. Criteria
[[Page 38679]]
that a customer may need to meet will be included in contracts which
can be modified as necessary to correspond with changes in the electric
utility industry.
Comment: A commenter asked what version of the General Power
Contract Provisions (GPCP) will be attached to the new contracts.
Response: The GPCP in effect at the time of the contract offer will
be attached to the contracts for electric service.
IX. Termination/Reduction
Comment: Several commenters expressed interest in contract
termination/Base Resource reduction. Commenters stated that to achieve
balance for a 30-year take-or-pay obligation, the contract should
include a reasonable termination or reduction provision. Commenters
asserted that precedent for contract termination provisions within
contracts has been set by Federal Energy Regulatory Commission (FERC)-
approved transmission contracts. Due to the vague language in the GPCP,
commenters stated that the Marketing Plan should clearly articulate
customers' ability to terminate or reduce their Base Resource
percentages when rates are extended. Commenters asserted that the
Marketing Plan should clarify a customer's ability to terminate its
contract under the GPCP. While the current GPCP provide for any
customer, during a 90-day notification window, to terminate a contract
following a rate change or formula rate extension, commenters
recommended that a clear termination or allocation reduction provision
be included in the body of the new agreement. Commenters asserted that
there is clear precedent in major WAPA agreements for a reasonable
termination notice provision. Commenters stated that specific language
should be included in the body of the power contracts to allow a
customer to reduce or terminate its allocation upon notice to WAPA,
because GPCP termination triggered by rate change action is not
sufficient risk protection for customers.
Response: WAPA acknowledges a 30-year term for a contract is a
significant commitment and understands the concern regarding the
ability to terminate the contract. WAPA's GPCP provide for customers to
terminate service in the event of a change of rates. However, to
address the commenters' concerns, WAPA will exclude Section 11 of the
GPCP and, in collaboration with the customers, will clarify Section 11
and insert it directly into the contract.
Comment: Several commenters also stated the contracts should
provide an exit clause at 5-year intervals during the term, after a
change in the rates or terms of service, or after a significant
regulatory change. According to the commenters, such a provision would
provide protection for customers' ratepayers. Without an undisputable
termination provision, commenters asserted that a 30-year take-or-pay
contract will be a difficult commitment to make in the current
environment of low cost renewable resources relative to the highly
uncertain resource availability and allocated costs associated with the
Base Resource. Commenters stated that sufficient notice periods would
give WAPA time to explore alternative means for marketing power. The
commenters strongly recommended consideration of a process that allows
customers to terminate or reduce their Base Resource percentages under
prescribed conditions. Such conditions could include a requirement that
customers attempt to reassign the Base Resource percentage; longer
notice provisions; or other criteria that would provide a balance for
all parties. Some of these commenters advocated an opportunity for
customers, upon reasonable notice, to terminate or modify their Base
Resource allocation, for any reason, every five years throughout the
term of the contract.
Response: As discussed above, WAPA will allow for termination as a
result of a rate adjustment. WAPA anticipates electric utility industry
changes and has provided for the ability to modify contracts in
collaboration with customers in this Marketing Plan; therefore, WAPA
does not believe an exit clause will be necessary in response to
changes in the electric utility industry. Additionally, WAPA will use
best efforts to assist customers that wish to reassign an allocation to
the extent there are customers interested in additional allocations.
Comment: A commenter advocated a process whereby those customers
intending to terminate their Base Resource contracts make an offering
to other remaining Base Resource customers prior to filing a notice to
terminate the contract. This would allow the remaining Base Resource
customers to elect the level of additional Base Resource product that
they would want to take and provide an overall balance of certainty for
the entire program.
Response: If an existing customer surrenders some or all of its
Base Resource percentage during a resource pool process, WAPA will
first use that surrendered Base Resource percentage to return all
existing customers up to their full Base Resource percentage prior to
the resource pool reduction. Any remaining Base Resource percentage
after all customers are returned to their full Base Resource percentage
will be included in the resource pool. Outside of a resource pool
period, if a customer were to surrender any or all of its Base Resource
percentage, WAPA, at its discretion, will reallocate that Base Resource
percentage.
X. First Preference Entitlement and Allocation
Comment: A commenter stated the Final Plan should state that any
and all preference entities located within Calaveras County are
eligible to join a joint powers authority (JPA) as members and receive
power through such JPA, irrespective if any of those entities receive a
Base Resource allocation.
Response: Increasing Calaveras County's first preference allocation
to serve additional loads of other preference customers would
circumvent the allocation process. Additionally, it would lower the
amount of Base Resource available for all preference customers.
XI. Transmission
Comment: A commenter supported continued use of the CVP
transmission for Base Resource deliveries.
Response: Western acknowledges the comment.
Comment: A commenter stated WAPA should work with customers to
ensure transmission arrangements are completed to provide for delivery
of power made available by the Marketing Plan.
Response: WAPA will use best efforts to assist customers with their
transmission arrangements. However, because WAPA does not own all the
transmission and distribution necessary to serve all customers' loads,
obtaining the transmission and distribution service necessary for
delivery of WAPA power is ultimately the customers' responsibility.
Comment: Several commenters support consideration of the PACI to
aid and benefit the CVP. Commenters stated that WAPA's transmission
assets can be used to improve the economic benefit of the CVP to
preference customers. Commenters also stated that WAPA should carefully
manage and use all of its transmission assets to maximize and enhance
economic and operational benefits to allow CVP costs to be minimized
and benefits to be shared with preference customers. Commenters
supported WAPA's commitment to
[[Page 38680]]
make surplus transmission available to aid and benefit the CVP.
Commenters encouraged WAPA to explore the best use of its surplus
transmission, including the Path 15 transmission line, to minimize
costs for the CVP while honoring its existing commitments.
Response: Under WAPA's OATT, WAPA is required to charge all
customers the same rate it charges itself, unless there is a statutory
exemption. The PACI legislation (16 U.S.C. 837g) provides that WAPA
should sell the excess capacity at equitable rates. Operational control
of Path 15 has been turned over to the California Independent System
Operator (CAISO). WAPA will continue to examine ways to utilize the
PACI to aid and benefit the CVP.
XII. Changes in the Electric Utility Industry
Comment: Numerous commenters support WAPA incorporating specific
provisions to negotiate changes to contracts should changes in the
electric industry/markets be significant enough that CVP transactions
would need to be managed differently than might be articulated in the
contracts. Commenters stated that this may be important in light of the
significant changes that continue to impact the electric utility
industry. Commenters further stated that the Marketing Plan needs to
remain flexible due to the evolving power system, and that WAPA may
need to re-evaluate the products and services it offers to continue to
provide power at the lowest possible rates consistent with sound
business principles. Commenters requested that WAPA clarify that any
changes will be done with mutual agreement by WAPA and the customers.
Response: WAPA may need to re-evaluate the manner in which it
markets the resource due to changes in the electric market. Any
contractual changes will be made via mutual consent through an
amendment executed by both parties to the contract.
XIII. Additional Comments
Comment: A commenter stated that, in the Proposed 2025 Schedule,
the one-time termination milestone should be removed and replaced with
the opportunity to terminate or reduce the Base Resource percentage
prior to contract start date.
Response: WAPA has determined that a minimum of 6 months is needed
to allow time to reallocate any returned allocations. Customers may
reduce or return their allocations no later than July 1, 2024.
Comment: A commenter asked what credit provisions will be applied
to all customers.
Response: WAPA's standard credit provisions in effect at the time
of contract execution will be applied to all customers.
Comment: Numerous commenters stated the Marketing Plan should
include a limiter that would cap power customers' payments when power
customers' combined CVP power and Restoration Fund payments exceed the
annual average of the North of Path 15 market rate. A commenter
strongly requested the Marketing Plan include a cap on costs that can
be allocated to power customers under certain conditions to ensure the
contract remains financially sustainable for customers and provides for
a more proportionate allocation of costs between water and power
customers. The commenters also stated that contracts should include a
cap on power customers' payments when CVP power, Restoration Fund
payments, Twin Tunnel payment and all other fees in total exceed the
annual average market price. Commenters further stated that Restoration
Fund costs are more than a third of the total cost of the Base
Resource. While customers indicated that they understand that WAPA's
cost recovery mechanisms for the CVP are based on the foundation of
recovery for direct project costs through the power revenue
requirement, they asked that WAPA explore further the Central Valley
Project Improvement Act (CVPIA) costs that are being passed through by
Reclamation before Plan implementation. Commenters stated that cost
containment and cost certainty must be part of the equation so that
Base Resource customers are able to better plan on power expenses and
better justify budget impacts. If no significant benefits to power
customers are associated with certain cost types, commenters argued
that sound cost causation principles would suggest that those costs
should not be passed on to power customers. Customers recommended that
WAPA agree to suspend the collection of non-essential costs and
projects when CVP generation levels are reduced, allowing Federal power
to be assessed at rates equal or near alternative power costs. In the
customers' view, the GPCP alone would not give customers protection
from the CVP cost impacts occurring because of continually increasing
CVPIA Restoration Fund costs. Because WAPA rate actions establish total
revenue requirements, and not per unit costs, customers believe that
the GPCP do not protect customers from increasing per unit costs due to
declining CVP power production. Lastly, customers argued that because
WAPA rate actions establish total revenue requirements, and do not
consider the value of CVP power generated, the GPCP do not protect
customers from declining value of CVP production due to water
management shifts to periods when power is less valuable.
Response: WAPA will sell the Base Resource at a cost-based rate.
WAPA is required to recover costs within a statutorily defined period.
The public ratemaking process is separate from the development of, and
allocation of power under, the Marketing Plan. WAPA encourages the
public to participate in WAPA's rate processes. Costs and availability
will be more clearly identified by the time commitments are required
for the Base Resource. Reclamation develops and implements the programs
under the CVPIA, and determines the costs associated with its programs.
WAPA is the billing agent for the Restoration Fund charges to the power
customers and has no control over those costs; however, WAPA minimizes
WAPA components of power costs to provide the best possible service at
the lowest possible rates consistent with sound business principles.
WAPA will continue to work with Reclamation and the customers on the
CVPIA costs Reclamation is passing on to WAPA's customers.
Summary of Revisions to the Proposed Plan
WAPA revised the Proposed Plan as a result of the comments received
during the comment period and public forums. Additionally, changes have
been made to more clearly define the intent, but not to alter the
substance, of the original proposal. The revisions are summarized as
follows:
WAPA will exclude GPCP Section 11 from the electric service
contract and, instead, will include language in the electric service
contract developed in collaboration with customers that clearly defines
the customers' ability to terminate their contracts after certain rate
processes.
The definition of Base Resource is modified to clarify that power
includes both capacity and energy. Additionally, the word ``forfeit''
is being replaced with ``surrender'' to more accurately refer to a
voluntary return of an allocation.
In response to comments regarding the Custom Product, the
definition of Custom Product is modified to clarify it does not include
Base Resource and may not necessarily be supplemental power.
[[Page 38681]]
2025 Power Marketing Plan
The Marketing Plan addresses: (1) The power to be marketed after
December 31, 2024, which is the termination date for all existing SNR
electric service contracts; (2) the general terms and conditions under
which the power will be marketed January 1, 2025, through December 31,
2054; and (3) the criteria to determine who will be eligible to receive
allocations from the resource pools.
WAPA will continue a collaborative process in implementing the
terms set forth in this Marketing Plan.
Within broad statutory guidelines, WAPA has discretion as to whom
and under what terms it will contract for the sale of Federal power, as
long as preference is accorded to statutorily-defined public bodies.
WAPA markets power in a manner that will encourage the most widespread
use at the lowest possible rates consistent with sound business
principles. All products and services provided under this Marketing
Plan will be subject to the operational requirements and constraints of
the CVP and the Washoe Project, transmission availability, purchase
power limitations, and Federal authorities.
I. Acronyms and Definitions
As used herein, the following acronyms and terms, whether singular
or plural, capitalized or not capitalized, shall have the following
meanings:
Allocation An offer from WAPA to sell Federal power for a certain
period of time, which will convert to a right to purchase after
execution of a contract.
Allocation Criteria Criteria used to determine the amount of energy
allocated to allottees.
Allottee A preference entity receiving an allocation percentage.
Ancillary Services Those services necessary to support the transfer of
electricity while maintaining reliable operation of the transmission
provider's transmission system in accordance with good utility
practice. Ancillary services are generally defined by the North
American Electric Reliability Corporation.
Base Resource CVP and Washoe Project power (capacity and energy) output
determined by WAPA to be available for marketing, including the
environmental attributes, after meeting the requirements of project use
and first preference customers, and any adjustments for maintenance,
reserves, system losses, and certain ancillary services.
Bill Crediting Contractual provisions whereby payments due to WAPA by a
customer shall be paid by a customer to a third party when so directed
by WAPA.
Capacity The electrical capability of a generator, transformer,
transmission circuit or other equipment.
Central Valley Project (CVP) A multipurpose Federal water development
project extending from the Cascade Range in northern California to the
plains along the Kern River, south of the City of Bakersfield.
Contract Principles Provisions of the electric service contracts,
including WAPA's General Power Contract Provisions.
Custom Product A combination of products and services which may be made
available by WAPA per customer request.
Customer An entity with a contract and receiving electric service from
WAPA's Sierra Nevada Region.
Eligibility Criteria Conditions that must be met to qualify for an
allocation.
Energy Measured in terms of the work it is capable of doing over a
period of time; electric energy is usually measured in kilowatthours or
megawatthours.
Firm A type of product and/or service that is available to a customer
at the times it is required.
First Preference Customer/Entity A preference customer and/or a
preference entity (an entity qualified to use, but not using,
preference power) within a county of origin (Trinity, Calaveras, and
Tuolumne) as specified under the Trinity River Division Act (69 Stat.
719) and the New Melones Project provisions of the Flood Control Act of
1962 (76 Stat. 1173, 1191-1192).
General Power Contract Provisions (GPCP) Standard terms and conditions
included in WAPA's electric service contracts.
Integrated Resource Plan (IRP) A process and framework within which the
costs and benefits of both demand and supply-side resources are
evaluated to develop the least total cost mix of utility resource
options.
Kilowatt (kW) A unit measuring the rate of production of electricity;
one kilowatt equals one thousand watts.
Marketing Plan WAPA's final 2025 Power Marketing Plan for the Sierra
Nevada Region.
Megawatt (MW) A unit measuring the rate of production of electricity;
one megawatt equals one million watts.
Net Billing Payments due to WAPA by a customer may be offset against
payments due to that customer by WAPA.
Power Capacity and energy.
Preference The requirements of Reclamation Law that provide for
preference in the sale of Federal power be given to certain entities,
such as governments (state, Federal and Native American),
municipalities and other public corporations or agencies, and
cooperatives and other nonprofit organizations financed in whole or in
part by loans made pursuant to the Rural Electrification Act of 1936
(See, e.g., Reclamation Project Act of 1939, Section 9(c), 43 USC
485h(c)).
Primary Marketing Area The area generally encompassing northern and
central California extending from the Cascade Range to the Tehachapi
Mountains and west-central Nevada.
Project Use Power as defined by Reclamation Law and/or used to operate
CVP and Washoe Project facilities.
Reclamation Law Refers to a series of Federal laws with a lineage
dating back to the late 1800s. Viewed as a whole, those laws create the
framework under which WAPA markets power.
Reimbursable Financing WAPA may purchase power or provide other
services using reimbursable authority pursuant to the Economy Act, 31
USC 1535. This is a funding mechanism used by Federal customers.
Sierra Nevada Region (SNR) The Sierra Nevada Region of the Western Area
Power Administration.
Unbundled Electric service that is separated into its components and
offered for sale with separate rates for each component.
WAPA Western Area Power Administration, United States Department of
Energy, a Federal power marketing administration responsible for
marketing and transmitting Federal power pursuant to Reclamation Law
and the DOE Organization Act (42 USC 7101, et seq.).
Washoe Project A Federal water project located in the Lahontan Basin in
west-central Nevada and east-central California.
II. Base Resource
The Base Resource, as defined in Section I., will include CVP and
Washoe Project power. CVP generation will vary hourly, daily, monthly,
and annually because it is subject to hydrological conditions and other
constraints that may govern CVP operations. CVP generation must be
adjusted for project use, first preference, maintenance, reserves,
system losses, and certain ancillary services before the Base Resource
is available for marketing. The Base Resource will be further adjusted
[[Page 38682]]
for transmission losses to the point of delivery.
The U.S. Department of the Interior, Fish and Wildlife Service
(F&WS), Lahontan National Fish Hatchery and Marble Bluff Fish Facility
are project use loads of the Washoe Project and have first priority to
those power resources. WAPA will continue to make every effort to
provide the Washoe Project power resource to F&WS. The generation
available after serving the F&WS needs will be marketed with the CVP
power resources. The Washoe Project is subject to the same variability
and constraints as the CVP.
III. Products and Services
WAPA will market its Base Resource alone or in combination with a
Custom Product, which could include purchasing some level of firming
power on behalf of all customers, a group of customers, or individual
customers. All costs incurred by WAPA in providing additional services
to customers will be paid by those customers using the services. The
degree to which WAPA continues to purchase power will depend on
customer requests and Federal authorities.
Each allottee will be allocated a percentage of the Base Resource.
All allottees will be required to commit to the Base Resource within 6
months of a contract offer.
Upon request, WAPA may develop a Custom Product for any customer. A
Custom Product may include any products or services mutually negotiated
between WAPA and a customer. This may include firming and/or renewable
power purchases, ancillary services, reserves, portfolio management
services, scheduling coordinator services, etc. Commitments to purchase
a Custom Product must be made by January 1, 2023, for a period of no
less than 5 years of service, beginning January 1, 2025. Thereafter,
the Custom Product will be offered for periods as determined by WAPA.
All costs incurred by WAPA in providing Custom Product services to
customers will be paid by those customers using the services.
WAPA may, at its discretion, extend the commitment dates for the
Base Resource and/or Custom Products.
WAPA will manage an exchange program to allow all customers to
fully and efficiently use their power allocations. Any power allocated
by WAPA to a customer that cannot be used on a real-time basis due to
that customer's load profile will be offered under this program to
other customers. The exchange program will be developed in
collaboration with the customers.
Any unused resources may be marketed for periods of time as
determined by WAPA, and may be marketed outside the primary marketing
area. Such sales may be to any entity (preference or non-preference),
under any terms, conditions, rates, or charges determined solely by
WAPA.
IV. Resource Extensions and Resource Pool Allocations
WAPA will initially provide 98 percent of its available power
resources to existing customers and establish a resource pool with the
remaining power resources for new allocations. Starting on January 1,
2040, WAPA will reduce the then-existing customers' allocations by 1
percent to develop the 2040 resource pool.
A. Extension for Existing Customers
Starting January 1, 2025, existing customers will have a right to
purchase 98 percent of their current Base Resource percentage amount;
except as provided below:
1. In the event that an existing customer(s) surrenders some or all
of its allocation prior to 2025, that percentage, up to 2 percent of
the total Base Resource, will be returned to the existing customers on
a pro rata basis.
2. In January 2024, WAPA will compare all existing customers'
allocations to their loads. WAPA will use the average Base Resource MWh
annual generation and the customers' previous 5 years energy
consumption to compare allocations to loads. No customer should have an
allocation greater than its load. If, after the comparison, WAPA
believes a customer(s) has an allocation greater than its load, WAPA
will consult with the customer(s) to determine if the allocation is, in
fact, larger than its load. If WAPA determines the allocation is too
large, WAPA will reduce that customer(s) allocation to 98 percent of
its load.
3. Starting on January 1, 2040, WAPA will reduce all customers'
allocations, including 2025 Resource Pool customers, by an additional 1
percent to create the 2040 Resource Pool. WAPA will follow the steps
listed in IV.A.1. and IV.A.2. in January 2039 when creating the 2040
Resource Pool.
B. Resource Pool Allocations
WAPA will establish a resource pool by reserving a portion of the
power available after 2024 for allocation to eligible preference
entities and existing customers. A second resource pool will be
established for service starting on January 1, 2040. Allocations from
the resource pools will be determined through a separate public process
at a later date.
1. Resource Pool Amount
The 2025 Resource Pool will initially consist of 2 percent of the
power resources available after 2024, and the 2040 Resource Pool will
initially consist of 1 percent of the power resources available after
2039. Should any Base Resource become available because of Sections
IV.A.1., IV.A.2., or IV.A.3., above, WAPA will include the additional
Base Resource in the appropriate resource pool. WAPA will, at its
discretion, allocate a percentage of the resource pools to applicants
that meet the Eligibility and Allocation Criteria.
2. Eligibility Criteria
WAPA will apply the following Eligibility Criteria to all
applicants seeking a resource pool allocation under the Marketing Plan:
a. Applicants must meet the preference requirements under Section
9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)(1)), as
amended and supplemented.
b. Applicants should be located within SNR's primary marketing area
(map of marketing area available upon request). If SNR's power
resources are not fully subscribed, WAPA may market its resource
outside the primary marketing area.
c. Applicants that require power for their own use must be ready,
willing, and able to receive and use Federal power.
d. Applicants that provide retail electric service must be ready,
willing, and able to receive and use the Federal power to provide
electric service to their customers, not for resale to others.
e. Applicants must submit an application in response to the Call
for Resource Pool Applications issued by WAPA in a separate Federal
Register notice. The notice will include the deadline for receipt of
those applications.
f. Native American applicants must be a Native American tribe as
defined in the Indian Self Determination Act of 1975 (25 U.S.C. 5304).
g. WAPA generally will not allocate power to applicants with loads
of less than 1 MW; however, allocations to applicants with loads which
are at least 500 kilowatts may be considered, provided the loads can be
aggregated with other allottees' loads to schedule and deliver to a
minimum load of 1 MW.
[[Page 38683]]
3. Allocation Criteria
The following Allocation Criteria will apply to all applicants
receiving a resource pool allocation under the Marketing Plan:
a. Allocations will be made in amounts as determined solely by WAPA
in the exercise of its discretion under Reclamation Law and considered
to be in the best interest of the U.S. Government.
b. Allocations will be based on the applicant's load during the
calendar year prior to the Call for Applications or the amount
requested, whichever is less.
c. An allottee will have the right to purchase power from WAPA only
upon the execution of an electric service contract between WAPA and the
allottee, and satisfaction of all conditions in that contract.
d. All customers, including those receiving an allocation from the
2025 Resource Pool, will be subject to the 2040 Resource Pool
adjustment.
e. Eligible Native American applicants will receive greater
consideration for an allocation of up to 65 percent of their total
energy load in the calendar year prior to the Call for Applications, as
authorized by 25 U.S.C. 3505.
V. General Criteria and Contract Principles
The following criteria and contract principles apply to all
contracts executed under the Marketing Plan, except that certain
criteria may not apply to contracts for first preference customers (see
Section VI.):
A. Electric service contracts shall be executed within 6 months of
a contract offer, unless otherwise agreed to in writing by WAPA.
B. Allocation percentages shall be subject to adjustment.
C. All power supplied by WAPA will be delivered pursuant to a
scheduling arrangement.
D. Customers will be required to pay for their percentage of the
Base Resource, regardless of whether they can actually use the power.
E. Customers must pay for all charges associated with the products
and services provided, including charges associated with ancillary
services, Custom Products, and transmission. Those charges will be
passed on to the customer(s) contracting for the product or service.
F. WAPA will develop rate schedules for services provided under the
Marketing Plan. Such rates will be developed through a separate public
process.
G. Customers must pay all applicable rates and charges in the
manner and within the time prescribed in the contract.
H. A written commitment to the Custom Product will be required on
or before January 1, 2023. WAPA may extend the final commitment dates
for the Custom Product.
I. Contracts will include clauses specifying criteria that
customers must meet on a continuous basis to be eligible to receive
electric service from WAPA.
J. Upon request, WAPA may provide, or assist each new and existing
customer in obtaining, transmission arrangements for delivery of power
marketed under the Marketing Plan; nonetheless, each entity is
ultimately responsible for obtaining its own delivery arrangements for
its load. Transmission service over the CVP system will be provided in
accordance with Section VII. of this Marketing Plan.
K. Contracts shall provide for WAPA to furnish electric service
beginning either January 1, 2025, or January 1, 2040, and continuing
through December 31, 2054.
L. Specific products and services may be provided for periods of
time as agreed to in the electric service contract.
M. Contracts shall incorporate WAPA's standard provisions, policies
and procedures for electric service contracts, integrated resource
plans, and GPCP, as determined by WAPA. WAPA will exclude Section 11 of
the GPCP from the electric service contracts and, instead, will include
language developed in collaboration with the customers that clearly
defines the customers' ability to terminate their electric service
contracts after certain rate processes.
N. Contracts will include a clause that allows WAPA to reduce or
rescind a customer's allocation percentage, upon 90 days' notice, if
WAPA determines that (1) the customer is not using this power to serve
its own loads, except as otherwise specified in Section III.; or (2)
the allocation amounts are consistently greater than the customer's
maximum load.
O. Any power not under contract may be allocated at any time, at
WAPA's sole discretion, or sold as deemed appropriate by WAPA,
consistent with Federal law.
P. Contracts will include a clause providing for WAPA to adjust the
customers' allocation percentage for the 2040 Resource Pool.
Q. Contracts may include a clause providing for alternative funding
arrangements, including Net Billing, Bill Crediting, Reimbursable
Financing, and advance payment.
VI. First Preference Entitlement and Allocation
The Trinity River Division Act and the New Melones Project
provisions of the Flood Control Act of 1962 (Acts) specify that
contracts for the sale and delivery of the additional electric energy,
available from the CVP power system as a result of the construction of
the plants authorized by these Acts and their integration into the CVP
system, shall be made in accordance with preferences expressed in
Reclamation Laws. These Acts also provide that a first preference of up
to 25 percent of the additional energy shall be given, under
Reclamation Law, to preference customers in the counties of origin
(Trinity, Tuolumne, and Calaveras), for use in those counties, who are
ready, willing, and able to enter into contracts for the energy.
WAPA will calculate and allocate the Maximum Entitlements of First
Preference Customers (MEFPC), which is the maximum amount of energy
available to first preference customers/entities, in accordance with
the following:
A. The MEFPC will be calculated separately for the New Melones
Project, Calaveras and Tuolumne Counties, and the Trinity River
Division (TRD), Trinity County (first preference projects). To
determine the 25 percent of additional energy made available to the CVP
as a result of the construction of each of these projects, WAPA will
use the average of the previous 20 years of historical annual
generation. The TRD MEFPC includes generation from Trinity, Carr, and
Spring Creek Powerplants and a portion of the Keswick Powerplant
generation. Based on the most current information available, this
calculation results in an estimated MEFPC of 122,800 MWh available from
the New Melones Project, and an estimated MEFPC of 361,500 MWh
available from the TRD. WAPA will calculate the MEFPC on June 1, 2024,
to be applicable January 1, 2025. WAPA will recalculate the MEFPC every
5 years thereafter.
B. Upon recalculation, if the MEFPC from a first preference project
is 10 percent above or below the currently applicable MEFPC from that
first preference project, the MEFPC will be adjusted to reflect that
increase or decrease. WAPA will notify affected first preference
customers at least 6 months before making an adjustment to the MEFPC.
If recalculation reduces the MEFPC to an amount less than the load
previously served, WAPA may, upon request and at its discretion, make
purchases necessary to replace that
[[Page 38684]]
amount of power no longer available. The costs for all such purchases
made on behalf of a first preference customer will be passed on to that
first preference customer.
C. An allocation made to a first preference customer/entity under
the Marketing Plan will be based on the power requirements of that
first preference customer/entity. The sum of allocations of first
preference power, including losses, shall not exceed the MEFPC from
each first preference project, or a county of origin's share of the
MEFPC, except as allowed under Section VI.G. below.
D. WAPA will provide full requirements service as described below
to first preference customers. The first preference customer will be
responsible for transformation and transmission losses to the first
preference customer delivery point. Transmission losses shall include
losses for CVP transmission and third-party transmission.
WAPA will provide the first preference customer with its full power
requirements (capacity and energy) up to its right to the MEFPC at the
Base Resource rate. If there is more than one first preference customer
in a county of origin, or a first preference entity in that county
makes a request for power, WAPA reserves the right to establish a
maximum amount of power available to each first preference customer
from the MEFPC. Payment for full requirements service will be based on
usage.
E. A first preference entity may exercise its right to use a
portion of the MEFPC by providing written notice to WAPA at least 18
months prior to the anniversary date of the first preference project
located in its county. The anniversary date is the successive fifth
year anniversary of the date the Secretary of the Interior declared the
availability of power from the powerplants in the counties of origin.
New applications for service to begin on January 1, 2025, must be
received 18 months prior to January 1, 2022 (i.e., July 1, 2020), for
Trinity County and 18 months prior to April 5, 2022 (i.e., October 5,
2020), for Calaveras and Tuolumne Counties. Other anniversary years
applicable to this Marketing Plan are 2027, 2032, 2037, 2042, 2047, and
2052.
F. If the request of a first preference customer/entity for power,
including adjustment for losses, is greater than the remaining MEFPC
from that county's first preference project, then WAPA will allocate
the remaining MEFPC to the first preference customer/entity first
making a request for a power allocation or a justified increase in its
allocation percentage.
G. Power allocated to first preference customers/entities in
Tuolumne and Calaveras Counties will be subject to the following
additional conditions:
1. Tuolumne and Calaveras Counties shall each be entitled to one-
half of the New Melones Project MEFPC.
2. If first preference customers in either Tuolumne County or
Calaveras County are not using their county's full one-half share, and
a first preference customer/entity in the other county requests power
in an amount exceeding that county's one-half share, then WAPA will
allocate the unused power, on a withdrawable basis, to the requesting
first preference customer/entity. Such power may be withdrawn for use
by a first preference customer/entity in the county not using its full
one-half share upon 6 months' written notice from WAPA.
H. Trinity Public Utilities District is currently the sole
recipient of the TRD's first preference rights.
I. Transmission service will be provided in accordance with
applicable laws and Section VII. of this Marketing Plan.
J. For planning purposes, first preference customers may be
required to provide forecasts and other information required by WAPA as
set forth in the electric service contract.
K. The general criteria and contract principles set forth in
Sections V.A., C. through I., K., M., and O. of this Marketing Plan
will apply to first preference customers.
VII. Transmission Service
Allottees and customers must secure necessary transmission service
to deliver Federal power. WAPA will provide transmission service to
deliver the Base Resource over the CVP transmission system. WAPA will
work with allottees and customers to secure bundled or unbundled
transmission services as appropriate beyond its CVP transmission system
in conjunction with its power sales in a manner consistent with FERC
orders, legislated mandates, or CAISO agreements. While WAPA will work
with allottees and customers, it is the allottees' and customers'
obligations to secure all necessary transmission service.
Generally, WAPA will market surplus transmission capacity on the
CVP and COTP available under WAPA's OATT. The legislation authorizing
the PACI (16 U.S.C. 837g) provides for the Secretary of Energy to
market surplus available transmission capacity on the PACI at equitable
rates to aid and benefit the CVP. WAPA will determine the use of its
transmission resources concurrently with further development of the
products and services under this Marketing Plan. Specific terms and
conditions for surplus transmission sales will be provided for in
future service agreements. WAPA will develop transmission rates under a
separate proceeding.
VIII. Changes in the Electric Utility Industry
WAPA recognizes that there have been, and continue to be,
significant changes in the electric utility industry. To address this
concern, WAPA, in collaboration with its customers, will include the
ability to make changes in how the Federal resource is marketed if
there is deemed a benefit to WAPA and its customers. Any changes
implemented would be done through negotiation and revision to
individual customer contracts.
Authorities
WAPA developed this Marketing Plan in accordance with its power
marketing authorities pursuant to the Department of Energy Organization
Act (42 U.S.C. 7101, et seq.); the Reclamation Act of June 17, 1902
(ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent
enactments, particularly Section 9(c) of the Reclamation Project Act of
1939 (43 U.S.C. 485h(c)); and other acts specifically applicable to the
projects involved.
Regulatory Procedure Requirements
Review Under the Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3501, et seq.), WAPA has received approval from the Office of
Management and Budget for the collection of customer information in
this rule, under control number 1910-5136, which expires on September
30, 2017.
Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.)
requires preparation of an initial regulatory flexibility analysis
whenever an agency is required by 5 U.S.C. 553, or any other law, to
publish general notice of proposed rulemaking for any proposed rule. A
final regulatory flexibility analysis is required whenever the agency
promulgates a final rule under 5 U.S.C. 553, after being required by
that section or any other law to publish a general notice of proposed
rulemaking. WAPA has determined that the analytical requirements of the
Regulatory Flexibility Act do not apply to this rulemaking because it
is a
[[Page 38685]]
rulemaking involving services applicable to public property.
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) (42
U.S.C. 4321-4370), Council on Environmental Quality NEPA implementing
regulations (40 CFR parts 1500-1508), and DOE NEPA implementing
regulations (10 CFR part 1021), WAPA completed a Categorical Exclusion
(CX). Since WAPA is reallocating its existing resources and is not
planning to increase its generation or transmission under this
Marketing Plan, a CX is the appropriate level of environmental review.
Determination Under Executive Order 12866
WAPA has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this Federal
Register notice by the Office of Management and Budget is required.
Dated: July 6, 2017.
Mark A. Gabriel,
Administrator.
[FR Doc. 2017-17210 Filed 8-14-17; 8:45 am]
BILLING CODE 6450-01-P