[Federal Register Volume 61, Number 128 (Tuesday, July 2, 1996)]
[Notices]
[Pages 34433-34434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16847]


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DEPARTMENT OF ENERGY
Western Area Power Administration


Replacement Resources Methods Report, Grand Canyon Protection Act 
of 1992

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

ACTION: Notice of availability, meetings, and comments.

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SUMMARY: Western has been engaged in a process to identify economically 
and technically feasible methods for replacing power resources which 
will be lost due to long-term, operational constraints at Glen Canyon 
Dam. This process will conclude with a report of the findings to 
Congress as required by the Grand Canyon Protection Act (GCP Act) of 
1992, Title XVIII of Pub. L. 102-575. Section 1809 of the GCP Act 
requires the Secretary of Energy to consult with representatives of the 
Colorado River Storage Project (CRSP) power customers, environmental 
organizations, and the Colorado River Basin States and with the 
Secretary of the Interior in this process. The Secretary of Energy, 
acting through Western, has the responsibility of marketing power 
generated from Glen Canyon Dam and other CRSP power facilities, 
including power acquired by Western to replace the power lost due to 
operational changes at Glen Canyon Dam.
    Western published a notice initiating the formal, public 
consultation process in the Federal Register on August 8, 1994 (59 FR 
40357). An October 7, 1994, Federal Register notice (59 FR 51191) by 
Western announced four regional public consultation meetings. A 20-
page, Replacement Resources Information Packet was prepared that 
included Western's proposed process to complete the method 
identification requirement of the GCP Act. On October 20, 1994, this 
information packet, along with the text of the October Federal Register 
notice, was mailed to approximately 900 entities and individuals on 
Western's Replacement Resources Process mailing list. In November 1994, 
four regional public involvement meetings were held in Salt Lake City, 
Utah; Denver, Colorado; Phoenix, Arizona; and Albuquerque, New Mexico. 
Public comments were received on the proposed process through December 
19, 1994, the comment deadline. Newsletters that provided updates on 
the status of replacement resources activities were prepared by Western 
in February and October 1995. These newsletters were distributed to 
Western's mailing list. On April 30, 1996, at Western's CRSP Customer 
Service Center's Annual Customer Meeting in Salt Lake City, Western 
provided an update on replacement resources activities to CRSP power 
customers and to Bureau of Reclamation (Reclamation) representatives. 
This update included a discussion by Western of earlier public comment.

DATES: Western now announces the availability of the Draft Replacement 
Resources Methods Report (Draft Methods Report). Western is also 
seeking comments on the Draft Replacement Resources Methods Report. To 
be considered, comments need to be received by September 3,1996. In 
addition, Western will hold four public meetings to provide information 
and to accept public comment on the proposed methods included in this 
report. Public consultation meetings will be held:

July 23, 1996: Albuquerque, New Mexico, Courtyard Marriott Hotel, 1920 
Yale Boulevard, SE., 9 a.m. to noon
July 24, 1996: Phoenix, Arizona, Embassy Suites Hotel, 3210 NW., Grand 
Avenue, at 9 a.m. to noon
July 25, 1996: Denver, Colorado, Denver West Marriott, 1717 Denver West 
Boulevard, 9 a.m. to noon
July 29, 1996: Salt Lake City, Utah, Doubletree Hotel, 215 South 
Temple, 8:30 a.m. to 11:30 a.m.

Background

    The Replacement Resources Methods Report identifies economic and 
technically feasible methods to replace capacity made unavailable (``or 
lost'') due to operational constraints. The report also includes a 
``proof-of-concept'' analysis of five hypothetical resource options 
with varying degrees of complexity. The methods considered are 
consistent with other Western resource acquisition policies, such as 
Western's Principles of Integrated Resource Planning (IRP) and its 
Purchase Power Policy. The methods would also be consistent with the 
pending Salt Lake City Area/ Integrated Projects (SLCA/IP) Contract 
Amendment, the Records of Decision in Western's SLCA/IP Electric Power 
Marketing Environmental Impact Statement (EIS) and Energy Planning and 
Management Program, Reclamation's Glen Canyon Dam EIS, pertinent 
Federal Energy Regulatory Commission orders, and laws affecting DOE, 
Western, and CRSP.
    In the Draft Methods Report, Western evaluates methods to replace 
capacity made unavailable (``or lost'') due to operational constraints 
using spot market, seasonal (6 months), and mid- to long-term (1 year 
or more, up to the end of the contract term) resource acquisitions. 
Western would consult with firm power customers periodically about the 
amount and term of resource acquisitions to be made on their behalf, 
which Western could then acquire and deliver to them. Greater public 
involvement and more complex evaluation procedures and acquisition 
methods would be used for long-term acquisitions rather than for 
seasonal acquisitions, consistent with Western's Purchase Power Policy.
    Western proposes to use a screening tool and a production cost 
computer model to evaluate future resource offers from potential 
suppliers. The Draft Methods Report details how these evaluation tools 
are applied to evaluate five hypothetical resource purchases. These 
resource alternatives were designed to illustrate the screening and 
evaluation tool's abilities to evaluate and select from among many 
diverse replacement resource options and to consider transmission 
system constraints and possible solutions. The Draft Methods Report 
concludes that the screening criteria and evaluation tools developed 
will enable Western to identify economically and technically feasible 
replacement power resources in the future.

Further Information

    To provide written comments on the Draft Replacement Resources 
Methods Report, contact: Mr. Jeffrey McCoy, Resource Analysis Team 
Lead, CRSP Customer Service Center, Western Area

[[Page 34434]]

Power Administration, PO Box 11606, Salt Lake City, UT 84147-0606.

Environmental Compliance

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

Determination Under Executive Order 12866

    DOE has determined this is not a significant regulatory action 
because it does not meet the criteria of Executive Order 12866, 58 FR 
51735. Western has an exemption from centralized regulatory review 
under Executive Order 12866; accordingly, no clearance of this notice 
by the Office of Management and Budget is required.
    Issued at Washington, DC, June 24, 1996.
Joel K. Bladow,
Assistant Administrator.

[FR Doc. 96-16847 Filed 7-1-96; 8:45 am]
BILLING CODE 6450-01-P