81_FR_27521 81 FR 27433 - Proposed 2025 Power Marketing Plan

81 FR 27433 - Proposed 2025 Power Marketing Plan

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 81, Issue 88 (May 6, 2016)

Page Range27433-27439
FR Document2016-10620

The Department of Energy (DOE), Western Area Power Administration (Western), Sierra Nevada Region (SNR) has developed a Proposed 2025 Power Marketing Plan (Proposed Plan). The Proposed Plan provides for marketing power from the Central Valley Project (CVP) and the Washoe Project from January 1, 2025, through December 31, 2054. Western currently markets about 1,580 megawatts (MW) of power from the CVP and 3.65 MW from 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 Western's long-term power sales contracts will expire. Western developed the Proposed Plan to define the products and services to be offered, and the Eligibility and Allocation Criteria that will lead to allocations of SNR's power starting on January 1, 2025, and going through December 31, 2054. This Federal Register notice initiates the formal public process for the Proposed Plan. As part of the process, Western requests public comment.

Federal Register, Volume 81 Issue 88 (Friday, May 6, 2016)
[Federal Register Volume 81, Number 88 (Friday, May 6, 2016)]
[Notices]
[Pages 27433-27439]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10620]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Proposed 2025 Power Marketing Plan

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed plan.

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SUMMARY: The Department of Energy (DOE), Western Area Power 
Administration (Western), Sierra Nevada Region (SNR) has developed a 
Proposed 2025 Power Marketing Plan (Proposed Plan). The Proposed Plan 
provides for marketing power from the Central Valley Project (CVP) and 
the Washoe Project from January 1, 2025, through December 31, 2054. 
Western currently markets about 1,580 megawatts (MW) of power from the 
CVP and 3.65 MW from 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 Western's long-term 
power sales contracts will expire. Western developed the Proposed Plan 
to define the products and services to be offered, and the Eligibility 
and Allocation Criteria that will lead to allocations of SNR's power 
starting on January 1, 2025, and going through December 31, 2054. This 
Federal Register notice initiates the formal public process for the 
Proposed Plan. As part of the process, Western requests public comment.

DATES: On June 1, 2016, beginning at 1 p.m., PT, Western will hold a 
public information forum to present the Proposed Plan and respond to 
questions from the public. On July 12, 2016, beginning at 1 p.m., PT, 
Western will hold a public comment forum to receive oral and written 
comments on the Proposed Plan. To assure consideration, written 
comments on the Proposed Plan must be received or postmarked by 5 p.m. 
August 4, 2016.

ADDRESSES: Each forum will be held at the Lake Natoma Inn, 702 Gold 
Lake Drive, Folsom, CA, 95630. Oral and written comments may be 
presented at the public comment forum. A transcript of oral comments 
made at this forum will be available from the court reporter or on 
Western's Web site https://www.wapa.gov/regions/SN/PowerMarketing/Pages/2025-Program.aspx. Send written comments to Ms. Sonja Anderson, 
Vice President of Power Marketing, Sierra Nevada Customer Service 
Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, 
CA 95630, email to [email protected]. Western reserves the right to 
not consider any comments that are received after the close of the 
comment period. The record, including all documents sent to Western by 
the public for the purpose of developing the Proposed Plan, will be 
available on Western's Web site at https://www.wapa.gov/regions/SN/PowerMarketing/Pages/2025-Program.aspx. After all public comments have 
been considered, Western will publish a Final 2025 Power Marketing Plan 
(Final Plan) in the Federal Register.

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, by email 
at [email protected], or by telephone (916) 353-4421.

SUPPLEMENTARY INFORMATION: 

Background

    The CVP is a large water and power system, initially authorized by 
Congress in 1935, which spans approximately one-third of the State of 
California. Congress defined the purposes of the CVP as: (1) River 
regulation; (2) improvement of navigation; (3) flood control; (4) 
irrigation; (5) domestic uses; and (6) power. The CVP Improvement Act 
of 1992 added fish and wildlife habitat to the list of CVP purposes.
    CVP power facilities include 11 powerplants with a maximum 
operating capability of about 2,113 MW and an estimated average annual 
generation of 4.6 million megawatthours (MWh). The U.S. Department of 
the Interior, Bureau of Reclamation (Reclamation) operates the water 
control and delivery system and all of the powerplants with the 
exception of the San Luis Unit, the operation of which Reclamation 
contracted to the State of California Department of Water Resources. 
Western markets and transmits the power available from the CVP. Western 
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. Western also has part ownership in the 342-
mile California-Oregon Transmission Project (COTP) 500-kV transmission 
line. Many of Western's existing customers have no direct access to 
Western's transmission lines and receive service over

[[Page 27434]]

transmission lines owned by other utilities.
    Congress authorized the Washoe Project in 1956. The Washoe Project 
is located in west-central Nevada and east-central California and was 
designed to regulate runoff from the Truckee and Carson Rivers and to 
enhance irrigation; water drainage; municipal, industrial, and 
fisheries uses; provide flood protection; fish and wildlife habitat; 
and recreation. The Washoe Project includes Prosser Creek Dam and 
reservoir; Stampede Dam, reservoir, and powerplant; Marble Creek Dam; 
and Pyramid Lake Fishway. The Stampede Powerplant, located in Sierra 
County, California, was completed in 1987 and has a maximum operating 
capability of 3.65 MW with an estimated annual generation of 10,000 
MWh. Sierra Pacific Power Company (SPPC) owns and operates the only 
transmission system available for access to Stampede Powerplant.

History of Central Valley Project Power Allocations

    The United States began generating power in the CVP from the Shasta 
Powerplant in 1944. Formal allocations of 450 MW of CVP power were 
first made in 1952. In 1964, with the addition of the Trinity River 
Division facilities, Reclamation increased allocations to preference 
customers to 925 MW. In 1967, under terms of Contract 14-06-200-2948A 
(Contract 2948A) with the Pacific Gas and Electric Company, power 
imports over the PACI (Northwest imports) were incorporated along with 
provisions for load level increases up to 985 MW in 1975 and up to 
1,050 MW in 1980.
    Later in 1980, the load level under Contract 2948A was increased by 
102 MW to 1,152 MW and Western increased allocations under the 1981 
Power Marketing Plan (47 FR 4139). New customers received 26 MW of 
nonwithdrawable power and 42 MW of withdrawable power \1\ for a total 
of 68 MW, with 4 MW of withdrawable power left unallocated. Also, 
diversity power \2\ allocations of 30 MW were made to those customers 
who could shed load during SNR's system simultaneous peak.
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    \1\ The Westlands Water District had a very large allocation 
that it was unable to use at the time, but wished to retain the 
right to the power for future load growth. Western determined it 
could allocate the unused Westlands' allocation as a withdrawable 
power product. Withdrawable power allocations were withdrawable on a 
3-month notice. Westlands withdrawable power allocations were in 
effect through 2004.
    \2\ Diversity power allocations were made to entities that had 
the ability to shed load during times of Western's total system 
simultaneous peak in order for Western to remain under its 
contractual system constraint of 1,152 MW.
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    Under the 1994 Power Marketing Plan (57 FR 45782 and 58 FR 34579), 
existing customers with contracts expiring in 1994 were allocated 501 
MW, and approximately 8 MW was allocated to new customers. With these 
allocations, a total of approximately 1,580 MW were under contract 
through 2004.
    On November 30, 1993, the National Defense Authorization Act for 
Fiscal Year 1993 (Pub. L. 102-484; 1993 NDAA) was signed into law. 
Section 2929 of the 1993 NDAA provides that, for a 10-year period, the 
CVP electric power allocations to military installations in the State 
of California which have been closed or approved for closure shall be 
reserved for sale through long-term contracts to preference entities 
which agree to use such power to promote economic development at the 
military installations closed or approved for closure. On December 1, 
1994, Western published the final procedures developed to fulfill the 
requirements of section 2929 of the 1993 NDAA (59 FR 61604). About 41 
MW of long-term firm power and about 8 MW of withdrawable power under 
contract to closing military installations were converted to NDAA power 
allocations.
    Under the 2004 Power Marketing Plan, Western changed the way in 
which it marketed its power resources. Rather than allocating a firm 
contract rate of delivery to each customer, Western allocated a 
percentage of the available power to each customer. Western converted 
existing customers' MW allocations to percentages and then reduced 
those percentages by 4 percent to create a 2005 resource pool. All 
customers' (including 2005 allottees) percentages were reduced again to 
create a 2 percent resource pool in 2015.

History of Washoe Project (Stampede Powerplant) Allocations

    Pursuant to the Final Allocation of Stampede Powerplant Power (50 
FR 43456), Western allocated all the energy generated at Stampede 
Powerplant in excess of that needed to serve project use (Lahontan Fish 
Hatchery and Marble Bluff Fish Facility) to Truckee Donner Public 
Utility District (Truckee Donner). Because Truckee Donner was unable to 
obtain transmission service, it was unable to enter into a contract 
with Western to receive Stampede energy. In 1988, Western rescinded the 
allocation of Stampede energy to Truckee Donner and marketed Stampede 
energy to SPPC under short-term agreements.
    In 1990, Western began conducting a marketing process for the sale 
of Stampede energy, giving priority to preference entities. Since no 
preference entity met the marketing criteria, SPPC continued to 
purchase Stampede energy under short-term agreements.
    In April 1994, Western executed agreements with SPPC and the U.S. 
Department of the Interior, Fish and Wildlife Service (FWS) that 
established a mechanism to provide project use service to the FWS 
facilities. These agreements also provided Western the option to market 
and transmit all energy, in excess of that which is required to provide 
project use service, outside of SPPC's control area.
    Under the 2004 Power Marketing Plan, the Washoe Project was 
financially integrated with the CVP to ensure cost recovery of the 
Washoe Project.
    After electric industry restructuring and open transmission access, 
Truckee Donner was finally able to obtain transmission service from 
SPPC and, in May 2007, Western terminated its agreement with SPPC and 
executed an agreement with Truckee Donner and the City of Fallon 
(Fallon) for the Stampede generation. Under this agreement, Truckee 
Donner and Fallon provide power to the FWS facilities. Revenues from 
this agreement flow back to the SNR's power revenue requirement. This 
agreement terminates December 31, 2024.

Development of the Proposed Plan

    Western is developing the Proposed Plan: (1) To define the products 
and services Western will offer, and (2) to determine the criteria for 
marketing and allocating power starting on January1, 2025, and going 
through December 31, 2054.
    In the Proposed Plan, Western is proposing to offer a resource 
extension to existing customers and to offer a portion of the resource 
to new customers. The Proposed Plan provides a balance between existing 
and new customers.
    As explained in the DATES section of this notice, Western will hold 
public information and comment forums on the Proposed Plan. After 
considering all public comments, Western will publish a notice of the 
Final Plan in the Federal Register. With that notice, Western also will 
announce its decisions regarding power resource extensions to existing 
customers and new allocations. After completing the Final Plan, Western 
will publish a call for applications. The deadline for receipt of 
applications will be set forth in the call for applications. Western 
will then evaluate the applications, determine which applications meet 
the requirements of the Final Plan, and exercise its

[[Page 27435]]

discretion, provided by law, to allocate power to certain eligible 
applicants. Proposed and final allocations will subsequently be 
published in the Federal Register.
    Western developed the schedule for the Proposed Plan recognizing 
the importance of: (1) Necessary planning time (approximately 5 years 
after final contract commitments) for customers to acquire new power 
resources should their allocation of power change; (2) sufficient time 
for SNR or its customers to negotiate contracts for balancing area 
services, third-party transmission, and supplemental power supplies; 
and (3) time to meet with each customer to design a product/service 
package prior to the customer making a final commitment.
    The Proposed Plan also incorporates the intent of Energy Planning 
and Management Program (EPAMP) (10 CFR part 905), published by Western 
on October 20, 1995 (60 FR 54151). EPAMP implements Section 114 of the 
Energy Policy Act of 1992, and requires Western's customers to prepare 
Integrated Resource Plans. The Power Marketing Initiative (PMI) of 
EPAMP provides a framework for extending a major portion of the power 
available at the time current contracts expire to existing customers, 
and for establishing project-specific resource pools.

Proposed 2025 Power Marketing Plan

    The Proposed Plan addresses: (1) The power to be marketed after 
December 31, 2024, which is the termination date for all SNR electric 
service contracts; (2) the general terms and conditions under which the 
power will be marketed starting on January 1, 2025, and going through 
December 31, 2054; and (3) the criteria to determine who will be 
eligible to receive allocations from the resource pools.
    Within broad statutory guidelines and operational constraints of 
the CVP and the Washoe Project, Western has wide 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. 
Western markets power in a manner that will encourage the most 
widespread use at the lowest possible rates consistent with sound 
business principles.

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 Western 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 output determined by 
Western 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 
Western by a customer shall be paid by a customer to a third party 
when so directed by Western.
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.
Chief Executive Officer and Administrator The Administrator and 
Chief Executive Officer of Western Area Power Administration.
Contract Principles Provisions of the electric service contracts, 
including Western's General Power Contract Provisions.
Custom Product A combination of products and services, excluding 
provisions for load growth, which may be made available by Western 
per customer request, using the customer's Base resource and 
supplemental purchases made by Western.
Customer An entity with a contract and receiving electric service 
from Western'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.
Final Plan Western's Final 2025 Marketing Plan for the Sierra Nevada 
Region.
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 that are included in Western'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.
Long-Term A designation for a contractual period of time greater 
than 5 years.
Megawatt (MW) A unit measuring the rate of production of 
electricity; one megawatt equals one million watts.
Net Billing Payments due to Western by a customer may be offset 
against payments due to that customer by Western.
Power Capacity and energy.
Power Marketing Initiative (PMI) A component of Western's EPAMP 
providing criteria regarding certain Western power marketing 
programs.
Preference The requirements of Reclamation Law that provide that 
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 
U.S.C. 485h(c)).
Primary Marketing Area The area which generally encompasses 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.
Proposed Plan Western's Proposed 2025 Power Marketing Plan.
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 Western markets power.
Reimbursable Financing Western may purchase power or provide other 
services using reimbursable authority pursuant to the Economy Act, 
31 U.S.C. 1535. This is a funding mechanism used by Federal 
customers.
Sierra Nevada Region The Sierra Nevada Customer Service 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.
Washoe Project A Federal water project located in the Lahontan Basin 
in west-central Nevada and east-central California.
Western Western Area Power Administration, United States Department 
of Energy, a Federal power marketing administration responsible for 
marketing and transmitting of Federal power pursuant to Reclamation 
Law and the DOE Organization Act (42 U.S.C. 7101, et seq.).

II. Marketable Power Resource

    The primary purpose of the CVP and Washoe Project is water control 
and

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delivery. The water control system consists of storage reservoirs that 
provide daily, seasonal, and annual flow regulation, and smaller 
regulating reservoirs for diverting water and smoothing upstream dam 
and powerplant releases. Power generated from these resources depends 
on hydrology and water operation requirements. Some of the power 
generated is used for project use to operate pumping and fishery 
facilities. Currently, project use power is metered at 189 locations in 
northern and central California and Nevada.
    Expected CVP generation (energy and capacity) for 2025 and beyond 
will vary annually, monthly, and daily based on hydrology and other 
constraints that govern CVP operations. CVP generation is available at 
the generator bus and must be adjusted for project use, maintenance, 
reserves, system losses, and certain ancillary services before the Base 
Resource is available for marketing. The power resources will be 
further adjusted for transmission losses to the point of delivery. The 
power resources also will be adjusted for first preference customers as 
described in this Proposed Plan.
    The following table lists estimates of CVP 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.

              Estimated CVP Power Resources and Adjustments
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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.................  100,000-1,100,000 MWh.
Monthly capacity..........................  1,100-1,900 MW.
Annual project use........................  670,000-1,670,000 MWh.
Monthly project use.......................  10,000-180,000 MWh.
Monthly project use (on peak).............  30-230 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.
------------------------------------------------------------------------

    All of the power resource adjustments and variables mentioned above 
will influence the amount of Base Resource available to customers. 
During some critically dry months, purchases may be required to meet 
project use and only a minimal amount of Base Resource will be 
available during such months. The usability of the Base Resource for 
meeting customers' loads will be directly related to a customer's 
ability to integrate this power resource into their power resource mix.
    Energy from the Washoe Project is estimated to be about 10,000 MWh 
annually. Currently, approximately half of the energy is being provided 
to F&WS Lahontan National Fish Hatchery and Marble Bluff Fish Facility. 
These F&WS facilities are project use loads of the Washoe Project and 
have first call on the power resources from the Washoe Project. All 
costs associated with providing F&WS project use service are, by law, 
non-reimbursable, and are not included in the Washoe Project energy 
rates.
    Western will continue to make every effort to provide the Washoe 
Project power resource to F&WS. F&WS is currently using approximately 
50 percent of Washoe Project generation, and the same percentage of 
costs is considered non-reimbursable. Western expects that F&WS loads 
will increase, reducing the cost to be repaid from power revenues.

III. Products and Services

    Western proposes to 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 Western in 
providing additional services to customers will be paid by those 
customers using the services. The degree to which Western continues to 
purchase power will depend on customer requests and Federal 
authorities. After the effective date of the Marketing Plan, Western 
will determine, in a collaborative process with the customers, the best 
use of Western's power and transmission resources to provide the Base 
Resource and Custom Products.
    Each allottee will be allocated a percentage of the Base Resource. 
Following the offer of a contract pursuant to the Final Plan, Western 
will work with each individual allottee to determine the best use of 
the Base Resource for that allottee. All allottees will be required to 
commit to the Base Resource within 6 months of a contract offer. Upon 
request, Western may develop a Custom Product for any customer. A 
Custom Product may include any products or services mutually negotiated 
between Western 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 agreed to 
by Western. Western may, at its discretion, extend the commitment dates 
for the Base Resource and Custom Product.
    Western proposes to manage an exchange program to allow all 
customers to fully and efficiently use their power allocations. Any 
power allocated by Western 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.
    Any unused resources may be marketed for periods of time as 
determined by Western, 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 Western.

IV. Proposed Resource Extensions and Resource Pool Allocations

    On December 31, 2024, all of the Sierra Nevada Region's long-term 
power sales contracts will expire. This Proposed Plan addresses how 
Western will market CVP and Washoe Project power after these contracts 
expire. Western proposes to apply the principles of the PMI of EPAMP to 
allocate power starting on January 1, 2025. Using the PMI as a 
framework, Western proposes to set aside a portion of its available 
power resource for new allocations. Based on Western's evaluation of 
potential new loads, Western proposes to initially provide 98 percent 
of its available power resource

[[Page 27437]]

to existing customers and to establish a resource pool for new 
allocations, as described below. Starting on January 1, 2040, Western 
will reduce the then-existing customers' allocations by 1 percent to 
develop the 2040 resource pool.
A. Extension for Existing Customers
    1. Starting January 1, 2025, Western proposes that existing 
customers will have a right to purchase 98 percent of their current 
Base Resource percentage amount; except as provided below:
    2. In the event that an existing customer(s) forfeits 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.
    3. In January 2024, Western will compare all existing customers' 
allocations to their loads. Western 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, Western 
believes a customer(s) has an allocation greater than its load, Western 
will consult with the customer(s) to determine if the allocation is, in 
fact, larger than its load. If SNR determines the allocation is too 
large, SNR will reduce that customer(s) allocation to 98 percent of its 
load.
    4. Starting on January 1, 2040, Western is proposing to reduce all 
customers, including 2025 Resource Pool customers, by an additional 1 
percent to create the 2040 Resource Pool.
B. Resource Pool Allocations
    1. Western proposes to 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 is 
proposed starting on January 1, 2040. The second resource pool will 
consist of 1 percent of the power resource available after 2039. 
Allocations for the resource pools will be determined through a 
separate public process at a later date.

2. Proposed Resource Pool Amount

    The 2025 Resource Pool will initially consist of 2 percent of the 
power resources available after 2024. Should any Base Resource become 
available because of Sections IV.A.2 and IV.A.3 above, Western will, 
using its discretion, allocate the additional Base Resource at that 
time. Western will, at its discretion, allocate a percentage of the 
2025 Resource Pool to applicants that meet the Eligibility and 
Allocation Criteria. Allocations from the 2040 Resource Pool will be 
determined through a separate public process conducted prior to 2040.

3. Eligibility Criteria

    Western proposes to 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. 485(c)), 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, Western 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 Western 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. 450b, 
as amended).
    g. Western 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.

4. Allocation Criteria

    Western proposes to apply the following Allocation Criteria to all 
applicants receiving a resource pool allocation under the Marketing 
Plan.
    a. Allocations will be made in amounts as determined solely by 
Western in 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 Western 
only upon the execution of an electric service contract between Western 
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 entities 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.

V. General Criteria and Contract Principles

    Western proposes to apply the following criteria and contract 
principles to all contracts executed under the Marketing Plan, except 
that certain criteria may not apply to contracts for first preference 
customers (see section VI for a definition of those customers):
    A. Electric service contracts shall be executed within 6 months of 
a contract offer, unless otherwise agreed to in writing by Western.
    B. Allocation percentages shall be subject to adjustment.
    C. All power supplied by Western 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. Western may develop rate schedules for services provided under 
the Proposed Plan. Such rates will be developed through a separate 
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. Western 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 Western.
    J. Upon request, Western shall 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

[[Page 27438]]

delivery arrangements to its load. Transmission service over the CVP 
system will be provided in accordance with Section VII of this Proposed 
Plan.
    K. Contracts shall provide for Western to furnish electric service 
effective January 1, 2025, 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 Western's standard provisions for 
electric service contracts, integrated resource plans, and General 
Power Contract Provisions, as determined by Western.
    N. Contracts will include a clause that allows Western to reduce or 
rescind a customer's allocation percentage, upon 90 days' notice, if 
Western 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 
Western's sole discretion, or sold as deemed appropriate by Western.
    P. Contracts will include a clause providing for Western 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 
Federal Reclamation Laws. These Acts also provide that a first 
preference of up to 25 percent of the additional energy shall be given, 
under Federal 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.
    Western proposes to 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, Western 
proposes to 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. Western proposes to recalculate the MEFPC every 
5 years, with the initial recalculation pertaining to this Proposed 
Plan completed by June 1, 2024.
    B. Upon recalculation, if the MEFPC from a first preference project 
is 10 percent above or below the currently effective MEFPC from that 
first preference project, the MEFPC will be adjusted to reflect that 
increase or decrease. Western 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, Western may, upon request and at its discretion, 
make purchases necessary to replace that 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 Final 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.7 below.
    D. Western proposes to 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.
    Western 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, Western 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 Western 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 Proposed 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 Western 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 Western 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 Western.
    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

[[Page 27439]]

laws and Section VII of this Proposed Plan.
    J. For planning purposes, first preference customers may be 
required to provide forecasts and other information required by Western 
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 Proposed Plan will apply 
to first preference customers.

VII. Transmission Service

    Allottees and customers must secure all necessary transmission 
service to deliver Federal power. Western will provide transmission 
service to deliver the Base Resource over the CVP transmission system. 
Western 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 Federal Energy Regulatory Commission orders, legislated 
mandates, or California Independent System Operator agreements. While 
Western will work with allottees and customers, it is the allottees and 
customers obligations to secure all necessary transmission service.
    Generally, Western will market surplus transmission capacity on the 
CVP and COTP available under Western's Open Access Transmission Tariff. 
The legislation authorizing the PACI provides for the Secretary to 
market surplus available transmission capacity on the PACI at equitable 
rates to aid and benefit the CVP. Western will determine the use of its 
transmission resources concurrently with further development of the 
products and services under this Proposed Plan. Specific terms and 
conditions for transmission will be provided for in future service 
agreements. Western will develop transmission rates under a separate 
proceeding.

VIII. Changes in the Electric Utility Industry

    Western recognizes that there have been, and continue to be, 
significant changes in the electric utility industry. In order to 
address this concern, Western is proposing, in collaboration with its 
customers, to include the ability to make changes in how the Federal 
resource is marketed if there is deemed a benefit to Western and its 
customers. Any changes implemented would be done through negotiation 
and revision to individual customer contracts.

Authorities

    Western developed this Proposed 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. 485(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.), Western 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. Western has determined that the analytical requirements of 
the Regulatory Flexibility Act do not apply to this rulemaking because 
it is a 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), Western completed a Categorical 
Exclusion (CX). Since Western is reallocating its existing resources 
and is not planning to increase its generation or transmission under 
this Proposed Plan, a CX is the appropriate level of environmental 
review.

Determination Under Executive Order 12866

    Western 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: April 22, 2016.
Mark A. Gabriel,
Administrator.
[FR Doc. 2016-10620 Filed 5-5-16; 8:45 am]
 BILLING CODE 6450-01-P



                                                                                      Federal Register / Vol. 81, No. 88 / Friday, May 6, 2016 / Notices                                             27433

                                                    Stevens Fishery Conservation and                        DEPARTMENT OF ENERGY                                  reserves the right to not consider any
                                                    Management Act and implementing                                                                               comments that are received after the
                                                    regulations at 50 CFR 600.920. We are                   Western Area Power Administration                     close of the comment period. The
                                                    also initiating consultation with the                                                                         record, including all documents sent to
                                                                                                            Proposed 2025 Power Marketing Plan                    Western by the public for the purpose
                                                    Massachusetts State Historic
                                                    Preservation Officer, as required by                    AGENCY: Western Area Power                            of developing the Proposed Plan, will be
                                                    section 106, National Historical                        Administration, DOE.                                  available on Western’s Web site at
                                                    Preservation Act, and the implementing                  ACTION: Notice of proposed plan.                      https://www.wapa.gov/regions/SN/
                                                    regulations of the Advisory Council on                                                                        PowerMarketing/Pages/2025-
                                                    Historic Preservation at 36 CFR 800.2.                  SUMMARY:    The Department of Energy                  Program.aspx. After all public
                                                                                                            (DOE), Western Area Power                             comments have been considered,
                                                       l. With this notice, we are designating              Administration (Western), Sierra                      Western will publish a Final 2025
                                                    Holyoke Gas and Electric as the                         Nevada Region (SNR) has developed a                   Power Marketing Plan (Final Plan) in
                                                    Commission’s non-federal                                Proposed 2025 Power Marketing Plan                    the Federal Register.
                                                    representative for carrying out informal                (Proposed Plan). The Proposed Plan
                                                    consultation pursuant to section 7 of the               provides for marketing power from the                 FOR FURTHER INFORMATION CONTACT:  Ms.
                                                                                                            Central Valley Project (CVP) and the                  Sonja Anderson, Vice President of
                                                    Endangered Species Act and section 106
                                                                                                            Washoe Project from January 1, 2025,                  Power Marketing, Sierra Nevada
                                                    of the National Historic Preservation
                                                                                                            through December 31, 2054. Western                    Customer Service Region, Western Area
                                                    Act.
                                                                                                            currently markets about 1,580                         Power Administration, 114 Parkshore
                                                       m. Holyoke Gas & Electric filed a Pre-                                                                     Drive, Folsom, CA 95630, by email at
                                                                                                            megawatts (MW) of power from the CVP
                                                    Application Document (PAD; including                                                                          sanderso@wapa.gov, or by telephone
                                                                                                            and 3.65 MW from the Washoe Project
                                                    a proposed process plan and schedule)                   under long-term contracts to                          (916) 353–4421.
                                                    with the Commission, pursuant to 18                     approximately 80 preference customers                 SUPPLEMENTARY INFORMATION:
                                                    CFR 5.6 of the Commission’s                             in northern and central California and
                                                    regulations.                                            Nevada. On December 31, 2024, all of                  Background
                                                       n. A copy of the PAD is available for                Western’s long-term power sales                          The CVP is a large water and power
                                                    review at the Commission in the Public                  contracts will expire. Western                        system, initially authorized by Congress
                                                    Reference Room or may be viewed on                      developed the Proposed Plan to define                 in 1935, which spans approximately
                                                    the Commission’s Web site (http://                      the products and services to be offered,              one-third of the State of California.
                                                    www.ferc.gov), using the ‘‘eLibrary’’                   and the Eligibility and Allocation                    Congress defined the purposes of the
                                                    link. Enter the docket number,                          Criteria that will lead to allocations of             CVP as: (1) River regulation; (2)
                                                    excluding the last three digits in the                  SNR’s power starting on January 1,                    improvement of navigation; (3) flood
                                                    docket number field to access the                       2025, and going through December 31,                  control; (4) irrigation; (5) domestic uses;
                                                    document. For assistance, contact FERC                  2054. This Federal Register notice                    and (6) power. The CVP Improvement
                                                    Online Support at                                       initiates the formal public process for               Act of 1992 added fish and wildlife
                                                                                                            the Proposed Plan. As part of the                     habitat to the list of CVP purposes.
                                                    FERCONlineSupport@ferc.gov, (866)
                                                                                                            process, Western requests public                         CVP power facilities include 11
                                                    208–3676 (toll free), or (202) 502–8659
                                                                                                            comment.                                              powerplants with a maximum operating
                                                    (TTY). A copy is also available for
                                                    inspection and reproduction at the                      DATES: On June 1, 2016, beginning at 1                capability of about 2,113 MW and an
                                                    address in paragraph h.                                 p.m., PT, Western will hold a public                  estimated average annual generation of
                                                                                                            information forum to present the                      4.6 million megawatthours (MWh). The
                                                       o. The licensee states its unequivocal               Proposed Plan and respond to questions                U.S. Department of the Interior, Bureau
                                                    intent to submit an application for a                   from the public. On July 12, 2016,                    of Reclamation (Reclamation) operates
                                                    new license for Project No. 2771.                       beginning at 1 p.m., PT, Western will                 the water control and delivery system
                                                    Pursuant to 18 CFR 16.8, 16.9, and                      hold a public comment forum to receive                and all of the powerplants with the
                                                    16.10, each application for a new                       oral and written comments on the                      exception of the San Luis Unit, the
                                                    license and any competing license                       Proposed Plan. To assure consideration,               operation of which Reclamation
                                                    applications must be filed with the                     written comments on the Proposed Plan                 contracted to the State of California
                                                    Commission at least 24 months prior to                  must be received or postmarked by 5                   Department of Water Resources.
                                                    the expiration of the existing license.                 p.m. August 4, 2016.                                  Western markets and transmits the
                                                    All applications for license for this                   ADDRESSES: Each forum will be held at                 power available from the CVP. Western
                                                    project must be filed by February 28,                   the Lake Natoma Inn, 702 Gold Lake                    owns the 94 circuit-mile Malin-Round
                                                    2019.                                                   Drive, Folsom, CA, 95630. Oral and                    Mountain 500-kilovolt (kV)
                                                       p. Register online at http://                        written comments may be presented at                  transmission line (an integral part of the
                                                    www.ferc.gov/docs-filing/                               the public comment forum. A transcript                Pacific AC Intertie (PACI)), the 84
                                                    esubscription.asp to be notified via                    of oral comments made at this forum                   circuit-mile Los Banos-Gates No. 3 500-
                                                    email of new filing and issuances                       will be available from the court reporter             kV transmission line, 803 circuit miles
                                                    related to this or other pending projects.              or on Western’s Web site https://                     of 230-kV transmission line, 7 circuit
                                                                                                            www.wapa.gov/regions/SN/                              miles of 115-kV transmission line, and
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    For assistance, contact FERC Online
                                                                                                            PowerMarketing/Pages/2025-                            approximately 63 circuit miles of 69-kV
                                                    Support.
                                                                                                            Program.aspx. Send written comments                   and below transmission line. Western
                                                    Kimberly D. Bose,                                       to Ms. Sonja Anderson, Vice President                 also has part ownership in the 342-mile
                                                    Secretary.                                              of Power Marketing, Sierra Nevada                     California-Oregon Transmission Project
                                                    [FR Doc. 2016–10664 Filed 5–5–16; 8:45 am]              Customer Service Region, Western Area                 (COTP) 500-kV transmission line. Many
                                                                                                            Power Administration, 114 Parkshore                   of Western’s existing customers have no
                                                    BILLING CODE 6717–01–P
                                                                                                            Drive, Folsom, CA 95630, email to                     direct access to Western’s transmission
                                                                                                            2025propplan@wapa.gov. Western                        lines and receive service over


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                                                    27434                             Federal Register / Vol. 81, No. 88 / Friday, May 6, 2016 / Notices

                                                    transmission lines owned by other                       during SNR’s system simultaneous                      Stampede energy, giving priority to
                                                    utilities.                                              peak.                                                 preference entities. Since no preference
                                                       Congress authorized the Washoe                          Under the 1994 Power Marketing Plan                entity met the marketing criteria, SPPC
                                                    Project in 1956. The Washoe Project is                  (57 FR 45782 and 58 FR 34579), existing               continued to purchase Stampede energy
                                                    located in west-central Nevada and east-                customers with contracts expiring in                  under short-term agreements.
                                                    central California and was designed to                  1994 were allocated 501 MW, and                          In April 1994, Western executed
                                                    regulate runoff from the Truckee and                    approximately 8 MW was allocated to                   agreements with SPPC and the U.S.
                                                    Carson Rivers and to enhance irrigation;                new customers. With these allocations,                Department of the Interior, Fish and
                                                    water drainage; municipal, industrial,                  a total of approximately 1,580 MW were                Wildlife Service (FWS) that established
                                                    and fisheries uses; provide flood                       under contract through 2004.                          a mechanism to provide project use
                                                    protection; fish and wildlife habitat; and                 On November 30, 1993, the National                 service to the FWS facilities. These
                                                    recreation. The Washoe Project includes                 Defense Authorization Act for Fiscal                  agreements also provided Western the
                                                    Prosser Creek Dam and reservoir;                        Year 1993 (Pub. L. 102–484; 1993                      option to market and transmit all
                                                    Stampede Dam, reservoir, and                            NDAA) was signed into law. Section                    energy, in excess of that which is
                                                    powerplant; Marble Creek Dam; and                       2929 of the 1993 NDAA provides that,                  required to provide project use service,
                                                    Pyramid Lake Fishway. The Stampede                      for a 10-year period, the CVP electric                outside of SPPC’s control area.
                                                    Powerplant, located in Sierra County,                   power allocations to military                            Under the 2004 Power Marketing
                                                    California, was completed in 1987 and                   installations in the State of California              Plan, the Washoe Project was financially
                                                    has a maximum operating capability of                   which have been closed or approved for                integrated with the CVP to ensure cost
                                                    3.65 MW with an estimated annual                        closure shall be reserved for sale                    recovery of the Washoe Project.
                                                    generation of 10,000 MWh. Sierra                        through long-term contracts to                           After electric industry restructuring
                                                    Pacific Power Company (SPPC) owns                       preference entities which agree to use                and open transmission access, Truckee
                                                    and operates the only transmission                      such power to promote economic                        Donner was finally able to obtain
                                                    system available for access to Stampede                 development at the military                           transmission service from SPPC and, in
                                                    Powerplant.                                             installations closed or approved for                  May 2007, Western terminated its
                                                                                                            closure. On December 1, 1994, Western                 agreement with SPPC and executed an
                                                    History of Central Valley Project Power                 published the final procedures                        agreement with Truckee Donner and the
                                                    Allocations                                             developed to fulfill the requirements of              City of Fallon (Fallon) for the Stampede
                                                       The United States began generating                   section 2929 of the 1993 NDAA (59 FR                  generation. Under this agreement,
                                                    power in the CVP from the Shasta                        61604). About 41 MW of long-term firm                 Truckee Donner and Fallon provide
                                                    Powerplant in 1944. Formal allocations                  power and about 8 MW of withdrawable                  power to the FWS facilities. Revenues
                                                    of 450 MW of CVP power were first                       power under contract to closing military              from this agreement flow back to the
                                                    made in 1952. In 1964, with the                         installations were converted to NDAA                  SNR’s power revenue requirement. This
                                                    addition of the Trinity River Division                  power allocations.                                    agreement terminates December 31,
                                                    facilities, Reclamation increased                          Under the 2004 Power Marketing                     2024.
                                                    allocations to preference customers to                  Plan, Western changed the way in
                                                                                                            which it marketed its power resources.                Development of the Proposed Plan
                                                    925 MW. In 1967, under terms of
                                                    Contract 14–06–200–2948A (Contract                      Rather than allocating a firm contract                   Western is developing the Proposed
                                                    2948A) with the Pacific Gas and Electric                rate of delivery to each customer,                    Plan: (1) To define the products and
                                                    Company, power imports over the PACI                    Western allocated a percentage of the                 services Western will offer, and (2) to
                                                    (Northwest imports) were incorporated                   available power to each customer.                     determine the criteria for marketing and
                                                    along with provisions for load level                    Western converted existing customers’                 allocating power starting on January1,
                                                    increases up to 985 MW in 1975 and up                   MW allocations to percentages and then                2025, and going through December 31,
                                                    to 1,050 MW in 1980.                                    reduced those percentages by 4 percent                2054.
                                                                                                            to create a 2005 resource pool. All                      In the Proposed Plan, Western is
                                                       Later in 1980, the load level under
                                                                                                            customers’ (including 2005 allottees)                 proposing to offer a resource extension
                                                    Contract 2948A was increased by 102
                                                                                                            percentages were reduced again to                     to existing customers and to offer a
                                                    MW to 1,152 MW and Western
                                                                                                            create a 2 percent resource pool in 2015.             portion of the resource to new
                                                    increased allocations under the 1981
                                                                                                                                                                  customers. The Proposed Plan provides
                                                    Power Marketing Plan (47 FR 4139).                      History of Washoe Project (Stampede                   a balance between existing and new
                                                    New customers received 26 MW of                         Powerplant) Allocations                               customers.
                                                    nonwithdrawable power and 42 MW of                                                                               As explained in the DATES section of
                                                                                                              Pursuant to the Final Allocation of
                                                    withdrawable power 1 for a total of 68
                                                                                                            Stampede Powerplant Power (50 FR                      this notice, Western will hold public
                                                    MW, with 4 MW of withdrawable power                                                                           information and comment forums on the
                                                                                                            43456), Western allocated all the energy
                                                    left unallocated. Also, diversity power 2                                                                     Proposed Plan. After considering all
                                                                                                            generated at Stampede Powerplant in
                                                    allocations of 30 MW were made to                                                                             public comments, Western will publish
                                                                                                            excess of that needed to serve project
                                                    those customers who could shed load                                                                           a notice of the Final Plan in the Federal
                                                                                                            use (Lahontan Fish Hatchery and
                                                       1 The Westlands Water District had a very large
                                                                                                            Marble Bluff Fish Facility) to Truckee                Register. With that notice, Western also
                                                    allocation that it was unable to use at the time, but   Donner Public Utility District (Truckee               will announce its decisions regarding
                                                    wished to retain the right to the power for future      Donner). Because Truckee Donner was                   power resource extensions to existing
                                                    load growth. Western determined it could allocate       unable to obtain transmission service, it             customers and new allocations. After
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    the unused Westlands’ allocation as a withdrawable                                                            completing the Final Plan, Western will
                                                    power product. Withdrawable power allocations
                                                                                                            was unable to enter into a contract with
                                                    were withdrawable on a 3-month notice. Westlands        Western to receive Stampede energy. In                publish a call for applications. The
                                                    withdrawable power allocations were in effect           1988, Western rescinded the allocation                deadline for receipt of applications will
                                                    through 2004.                                           of Stampede energy to Truckee Donner                  be set forth in the call for applications.
                                                       2 Diversity power allocations were made to
                                                                                                            and marketed Stampede energy to SPPC                  Western will then evaluate the
                                                    entities that had the ability to shed load during
                                                    times of Western’s total system simultaneous peak       under short-term agreements.                          applications, determine which
                                                    in order for Western to remain under its contractual      In 1990, Western began conducting a                 applications meet the requirements of
                                                    system constraint of 1,152 MW.                          marketing process for the sale of                     the Final Plan, and exercise its


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                                                                                      Federal Register / Vol. 81, No. 88 / Friday, May 6, 2016 / Notices                                               27435

                                                    discretion, provided by law, to allocate                  which will convert to a right to purchase             included in Western’s electric service
                                                    power to certain eligible applicants.                     after execution of a contract.                        contracts.
                                                    Proposed and final allocations will                     Allocation Criteria Criteria used to                  Integrated Resource Plan (IRP) A process
                                                                                                              determine the amount of energy allocated              and framework within which the costs and
                                                    subsequently be published in the
                                                                                                              to allottees.                                         benefits of both demand and supply-side
                                                    Federal Register.                                       Allottee A preference entity receiving an               resources are evaluated to develop the least
                                                      Western developed the schedule for                      allocation percentage.                                total cost mix of utility resource options.
                                                    the Proposed Plan recognizing the                       Ancillary Services Those services necessary           Kilowatt (kW) A unit measuring the rate of
                                                    importance of: (1) Necessary planning                     to support the transfer of electricity while          production of electricity; one kilowatt
                                                    time (approximately 5 years after final                   maintaining reliable operation of the                 equals one thousand watts.
                                                    contract commitments) for customers to                    transmission provider’s transmission                Long-Term A designation for a contractual
                                                    acquire new power resources should                        system in accordance with good utility                period of time greater than 5 years.
                                                                                                              practice. Ancillary services are generally          Megawatt (MW) A unit measuring the rate
                                                    their allocation of power change; (2)                     defined by the North American Electric                of production of electricity; one megawatt
                                                    sufficient time for SNR or its customers                  Reliability Corporation.                              equals one million watts.
                                                    to negotiate contracts for balancing area               Base Resource CVP and Washoe Project                  Net Billing Payments due to Western by a
                                                    services, third-party transmission, and                   power output determined by Western to be              customer may be offset against payments
                                                    supplemental power supplies; and (3)                      available for marketing, including the                due to that customer by Western.
                                                    time to meet with each customer to                        environmental attributes, after meeting the         Power Capacity and energy.
                                                    design a product/service package prior                    requirements of project use and first               Power Marketing Initiative (PMI) A
                                                    to the customer making a final                            preference customers, and any adjustments             component of Western’s EPAMP providing
                                                                                                              for maintenance, reserves, system losses,             criteria regarding certain Western power
                                                    commitment.                                                                                                     marketing programs.
                                                                                                              and certain ancillary services.
                                                      The Proposed Plan also incorporates                   Bill Crediting Contractual provisions                 Preference The requirements of
                                                    the intent of Energy Planning and                         whereby payments due to Western by a                  Reclamation Law that provide that
                                                    Management Program (EPAMP) (10 CFR                        customer shall be paid by a customer to a             preference in the sale of Federal power be
                                                    part 905), published by Western on                        third party when so directed by Western.              given to certain entities, such as
                                                    October 20, 1995 (60 FR 54151). EPAMP                   Capacity The electrical capability of a                 governments (state, Federal and Native
                                                    implements Section 114 of the Energy                      generator, transformer, transmission circuit          American), municipalities and other public
                                                    Policy Act of 1992, and requires                          or other equipment.                                   corporations or agencies, and cooperatives
                                                                                                            Central Valley Project (CVP) A                          and other nonprofit organizations financed
                                                    Western’s customers to prepare                                                                                  in whole or in part by loans made pursuant
                                                                                                              multipurpose Federal water development
                                                    Integrated Resource Plans. The Power                      project extending from the Cascade Range              to the Rural Electrification Act of 1936
                                                    Marketing Initiative (PMI) of EPAMP                       in northern California to the plains along            (See, e.g., Reclamation Project Act of 1939,
                                                    provides a framework for extending a                      the Kern River, south of the City of                  Section 9(c), 43 U.S.C. 485h(c)).
                                                    major portion of the power available at                   Bakersfield.                                        Primary Marketing Area The area which
                                                    the time current contracts expire to                    Chief Executive Officer and Administrator               generally encompasses northern and
                                                    existing customers, and for establishing                  The Administrator and Chief Executive                 central California extending from the
                                                    project-specific resource pools.                          Officer of Western Area Power                         Cascade Range to the Tehachapi Mountains
                                                                                                              Administration.                                       and west-central Nevada.
                                                    Proposed 2025 Power Marketing Plan                      Contract Principles Provisions of the                 Project Use Power as defined by
                                                                                                              electric service contracts, including                 Reclamation Law and/or used to operate
                                                       The Proposed Plan addresses: (1) The                                                                         CVP and Washoe Project facilities.
                                                                                                              Western’s General Power Contract
                                                    power to be marketed after December                       Provisions.                                         Proposed Plan Western’s Proposed 2025
                                                    31, 2024, which is the termination date                 Custom Product A combination of products                Power Marketing Plan.
                                                    for all SNR electric service contracts; (2)               and services, excluding provisions for load         Reclamation Law Refers to a series of
                                                    the general terms and conditions under                    growth, which may be made available by                Federal laws with a lineage dating back to
                                                    which the power will be marketed                          Western per customer request, using the               the late 1800s. Viewed as a whole, those
                                                    starting on January 1, 2025, and going                    customer’s Base resource and                          laws create the framework under which
                                                                                                              supplemental purchases made by Western.               Western markets power.
                                                    through December 31, 2054; and (3) the                                                                        Reimbursable Financing Western may
                                                    criteria to determine who will be                       Customer An entity with a contract and
                                                                                                              receiving electric service from Western’s             purchase power or provide other services
                                                    eligible to receive allocations from the                                                                        using reimbursable authority pursuant to
                                                                                                              Sierra Nevada Region.
                                                    resource pools.                                         Eligibility Criteria Conditions that must be            the Economy Act, 31 U.S.C. 1535. This is
                                                       Within broad statutory guidelines and                  met to qualify for an allocation.                     a funding mechanism used by Federal
                                                    operational constraints of the CVP and                  Energy Measured in terms of the work it is              customers.
                                                    the Washoe Project, Western has wide                      capable of doing over a period of time;             Sierra Nevada Region The Sierra Nevada
                                                    discretion as to whom and under what                      electric energy is usually measured in                Customer Service Region of the Western
                                                                                                              kilowatthours or megawatthours.                       Area Power Administration.
                                                    terms it will contract for the sale of
                                                                                                            Final Plan Western’s Final 2025 Marketing             Unbundled Electric service that is separated
                                                    Federal power, as long as preference is                                                                         into its components and offered for sale
                                                    accorded to statutorily defined public                    Plan for the Sierra Nevada Region.
                                                                                                            Firm A type of product and/or service that              with separate rates for each component.
                                                    bodies. Western markets power in a                        is available to a customer at the times it is       Washoe Project A Federal water project
                                                    manner that will encourage the most                       required.                                             located in the Lahontan Basin in west-
                                                    widespread use at the lowest possible                   First Preference Customer/Entity A                      central Nevada and east-central California.
                                                    rates consistent with sound business                      preference customer and/or a preference             Western Western Area Power
                                                    principles.                                               entity (an entity qualified to use, but not           Administration, United States Department
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                                                                                                              using, preference power) within a county              of Energy, a Federal power marketing
                                                    I. Acronyms and Definitions                               of origin (Trinity, Calaveras, and                    administration responsible for marketing
                                                                                                              Tuolumne) as specified under the Trinity              and transmitting of Federal power
                                                      As used herein, the following
                                                                                                              River Division Act (69 Stat. 719) and the             pursuant to Reclamation Law and the DOE
                                                    acronyms and terms, whether singular                                                                            Organization Act (42 U.S.C. 7101, et seq.).
                                                                                                              New Melones project provisions of the
                                                    or plural, capitalized or not capitalized,
                                                                                                              Flood Control Act of 1962 (76 Stat. 1173,           II. Marketable Power Resource
                                                    shall have the following meanings:                        1191–1192).
                                                    Allocation An offer from Western to sell                General Power Contract Provisions (GPCP)                 The primary purpose of the CVP and
                                                      Federal power for a certain period of time,             Standard terms and conditions that are              Washoe Project is water control and


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                                                    27436                                        Federal Register / Vol. 81, No. 88 / Friday, May 6, 2016 / Notices

                                                    delivery. The water control system                                       at 189 locations in northern and central                              further adjusted for transmission losses
                                                    consists of storage reservoirs that                                      California and Nevada.                                                to the point of delivery. The power
                                                    provide daily, seasonal, and annual flow                                    Expected CVP generation (energy and                                resources also will be adjusted for first
                                                    regulation, and smaller regulating                                       capacity) for 2025 and beyond will vary                               preference customers as described in
                                                    reservoirs for diverting water and                                       annually, monthly, and daily based on                                 this Proposed Plan.
                                                    smoothing upstream dam and                                               hydrology and other constraints that
                                                                                                                             govern CVP operations. CVP generation                                   The following table lists estimates of
                                                    powerplant releases. Power generated
                                                    from these resources depends on                                          is available at the generator bus and                                 CVP power resources and adjustments.
                                                    hydrology and water operation                                            must be adjusted for project use,                                     This table is for informational purposes
                                                    requirements. Some of the power                                          maintenance, reserves, system losses,                                 only and does not imply the power
                                                    generated is used for project use to                                     and certain ancillary services before the                             resources and adjustments shown will
                                                    operate pumping and fishery facilities.                                  Base Resource is available for                                        be the actual amounts available or
                                                    Currently, project use power is metered                                  marketing. The power resources will be                                adjustments applied.

                                                                                                             ESTIMATED CVP POWER RESOURCES AND ADJUSTMENTS
                                                                                                  Power resources/Adjustment                                                                                    Range/Value

                                                    Annual energy generation .......................................................................................................          2,400,000–8,600,000 MWh.
                                                    Monthly energy generation ......................................................................................................          100,000–1,100,000 MWh.
                                                    Monthly capacity ......................................................................................................................   1,100–1,900 MW.
                                                    Annual project use ..................................................................................................................     670,000–1,670,000 MWh.
                                                    Monthly project use .................................................................................................................     10,000–180,000 MWh.
                                                    Monthly project use (on peak) ................................................................................................            30–230 MW.
                                                    Monthly maintenance ..............................................................................................................        0–300 MW.
                                                    Reserves—hydro .....................................................................................................................      minimum 5% of monthly capacity.
                                                    CVP transmission and transformation losses from the generator bus to a 230-kV load bus                                                    1.6%.



                                                       All of the power resource adjustments                                 a Custom Product, which could include                                 Thereafter, the Custom Product will be
                                                    and variables mentioned above will                                       purchasing some level of firming power                                offered for periods as agreed to by
                                                    influence the amount of Base Resource                                    on behalf of all customers, a group of                                Western. Western may, at its discretion,
                                                    available to customers. During some                                      customers, or individual customers. All                               extend the commitment dates for the
                                                    critically dry months, purchases may be                                  costs incurred by Western in providing                                Base Resource and Custom Product.
                                                    required to meet project use and only a                                  additional services to customers will be                                 Western proposes to manage an
                                                    minimal amount of Base Resource will                                     paid by those customers using the                                     exchange program to allow all
                                                    be available during such months. The                                     services. The degree to which Western                                 customers to fully and efficiently use
                                                    usability of the Base Resource for                                       continues to purchase power will                                      their power allocations. Any power
                                                    meeting customers’ loads will be                                         depend on customer requests and                                       allocated by Western to a customer that
                                                    directly related to a customer’s ability to                              Federal authorities. After the effective                              cannot be used on a real-time basis due
                                                    integrate this power resource into their                                 date of the Marketing Plan, Western will                              to that customer’s load profile will be
                                                    power resource mix.                                                      determine, in a collaborative process                                 offered under this program to other
                                                       Energy from the Washoe Project is                                     with the customers, the best use of                                   customers.
                                                    estimated to be about 10,000 MWh                                         Western’s power and transmission                                         Any unused resources may be
                                                    annually. Currently, approximately half                                  resources to provide the Base Resource                                marketed for periods of time as
                                                    of the energy is being provided to F&WS                                  and Custom Products.                                                  determined by Western, and may be
                                                    Lahontan National Fish Hatchery and                                                                                                            marketed outside the primary marketing
                                                    Marble Bluff Fish Facility. These F&WS                                      Each allottee will be allocated a                                  area. Such sales may be to any entity
                                                    facilities are project use loads of the                                  percentage of the Base Resource.                                      (preference or non-preference), under
                                                    Washoe Project and have first call on                                    Following the offer of a contract                                     any terms, conditions, rates or charges,
                                                    the power resources from the Washoe                                      pursuant to the Final Plan, Western will                              determined solely by Western.
                                                    Project. All costs associated with                                       work with each individual allottee to
                                                                                                                             determine the best use of the Base                                    IV. Proposed Resource Extensions and
                                                    providing F&WS project use service are,                                                                                                        Resource Pool Allocations
                                                    by law, non-reimbursable, and are not                                    Resource for that allottee. All allottees
                                                    included in the Washoe Project energy                                    will be required to commit to the Base                                   On December 31, 2024, all of the
                                                    rates.                                                                   Resource within 6 months of a contract                                Sierra Nevada Region’s long-term power
                                                       Western will continue to make every                                   offer. Upon request, Western may                                      sales contracts will expire. This
                                                    effort to provide the Washoe Project                                     develop a Custom Product for any                                      Proposed Plan addresses how Western
                                                    power resource to F&WS. F&WS is                                          customer. A Custom Product may                                        will market CVP and Washoe Project
                                                    currently using approximately 50                                         include any products or services                                      power after these contracts expire.
                                                    percent of Washoe Project generation,                                    mutually negotiated between Western                                   Western proposes to apply the
                                                                                                                             and a customer. This may include                                      principles of the PMI of EPAMP to
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                                                    and the same percentage of costs is
                                                    considered non-reimbursable. Western                                     firming and/or renewable power                                        allocate power starting on January 1,
                                                    expects that F&WS loads will increase,                                   purchases, ancillary services, reserves,                              2025. Using the PMI as a framework,
                                                    reducing the cost to be repaid from                                      portfolio management services,                                        Western proposes to set aside a portion
                                                    power revenues.                                                          scheduling coordinator services, etc.                                 of its available power resource for new
                                                                                                                             Commitments to purchase a Custom                                      allocations. Based on Western’s
                                                    III. Products and Services                                               Product must be made by January 1,                                    evaluation of potential new loads,
                                                       Western proposes to market its Base                                   2023, for a period of no less than 5 years                            Western proposes to initially provide 98
                                                    Resource alone or in combination with                                    of service, beginning January 1, 2025.                                percent of its available power resource


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                                                                                      Federal Register / Vol. 81, No. 88 / Friday, May 6, 2016 / Notices                                           27437

                                                    to existing customers and to establish a                that meet the Eligibility and Allocation              upon the execution of an electric service
                                                    resource pool for new allocations, as                   Criteria. Allocations from the 2040                   contract between Western and the
                                                    described below. Starting on January 1,                 Resource Pool will be determined                      allottee, and satisfaction of all
                                                    2040, Western will reduce the then-                     through a separate public process                     conditions in that contract.
                                                    existing customers’ allocations by 1                    conducted prior to 2040.                                 d. All customers, including those
                                                    percent to develop the 2040 resource                    3. Eligibility Criteria                               receiving an allocation from the 2025
                                                    pool.                                                      Western proposes to apply the                      Resource Pool, will be subject to the
                                                                                                            following Eligibility Criteria to all                 2040 Resource Pool adjustment.
                                                    A. Extension for Existing Customers
                                                                                                            applicants seeking a resource pool                       e. Eligible Native American entities
                                                       1. Starting January 1, 2025, Western                                                                       will receive greater consideration for an
                                                    proposes that existing customers will                   allocation under the Marketing Plan.
                                                                                                               a. Applicants must meet the                        allocation of up to 65 percent of their
                                                    have a right to purchase 98 percent of                                                                        total energy load in the calendar year
                                                                                                            preference requirements under Section
                                                    their current Base Resource percentage                                                                        prior to the Call for Applications.
                                                                                                            9(c) of the Reclamation Project Act of
                                                    amount; except as provided below:
                                                       2. In the event that an existing                     1939 (43 U.S.C. 485(c)), as amended and               V. General Criteria and Contract
                                                    customer(s) forfeits some or all of its                 supplemented.                                         Principles
                                                    allocation prior to 2025, that percentage,                 b. Applicants should be located
                                                                                                                                                                    Western proposes to apply the
                                                    up to 2 percent of the total Base                       within SNR’s primary marketing area
                                                                                                                                                                  following criteria and contract
                                                    Resource, will be returned to the                       (map of marketing area available upon
                                                                                                                                                                  principles to all contracts executed
                                                    existing customers on a pro rata basis.                 request). If SNR’s power resources are
                                                                                                                                                                  under the Marketing Plan, except that
                                                       3. In January 2024, Western will                     not fully subscribed, Western may
                                                                                                                                                                  certain criteria may not apply to
                                                    compare all existing customers’                         market its resource outside the primary
                                                                                                                                                                  contracts for first preference customers
                                                    allocations to their loads. Western will                marketing area.
                                                                                                               c. Applicants that require power for               (see section VI for a definition of those
                                                    use the average Base Resource MWh                                                                             customers):
                                                    annual generation and the customers’                    their own use must be ready, willing,
                                                                                                                                                                    A. Electric service contracts shall be
                                                    previous 5 years energy consumption to                  and able to receive and use Federal
                                                                                                                                                                  executed within 6 months of a contract
                                                    compare allocations to loads. No                        power.
                                                                                                                                                                  offer, unless otherwise agreed to in
                                                    customer should have an allocation                         d. Applicants that provide retail
                                                                                                                                                                  writing by Western.
                                                    greater than its load. If, after the                    electric service must be ready, willing,
                                                                                                                                                                    B. Allocation percentages shall be
                                                    comparison, Western believes a                          and able to receive and use the Federal
                                                                                                                                                                  subject to adjustment.
                                                    customer(s) has an allocation greater                   power to provide electric service to their              C. All power supplied by Western
                                                    than its load, Western will consult with                customers, not for resale to others.                  will be delivered pursuant to a
                                                    the customer(s) to determine if the                        e. Applicants must submit an
                                                                                                                                                                  scheduling arrangement.
                                                    allocation is, in fact, larger than its load.           application in response to the Call for                 D. Customers will be required to pay
                                                    If SNR determines the allocation is too                 Resource Pool Applications issued by                  for their percentage of the Base
                                                    large, SNR will reduce that customer(s)                 Western in a separate Federal Register                Resource, regardless of whether they
                                                    allocation to 98 percent of its load.                   notice. The notice will include the                   can actually use the power.
                                                       4. Starting on January 1, 2040,                      deadline for receipt of those                           E. Customers must pay for all charges
                                                    Western is proposing to reduce all                      applications.                                         associated with the products and
                                                    customers, including 2025 Resource                         f. Native American applicants must be              services provided, including charges
                                                    Pool customers, by an additional 1                      a Native American tribe as defined in                 associated with ancillary services,
                                                    percent to create the 2040 Resource                     the Indian Self Determination Act of                  Custom Products, and transmission.
                                                    Pool.                                                   1975 (25 U.S.C. 450b, as amended).                    Those charges will be passed on to the
                                                                                                               g. Western generally will not allocate             customer(s) contracting for the product
                                                    B. Resource Pool Allocations                            power to applicants with loads of less                or service.
                                                       1. Western proposes to establish a                   than 1 MW; however, allocations to                      F. Western may develop rate
                                                    resource pool by reserving a portion of                 applicants with loads which are at least              schedules for services provided under
                                                    the power available after 2024 for                      500 kilowatts may be considered,                      the Proposed Plan. Such rates will be
                                                    allocation to eligible preference entities              provided the loads can be aggregated                  developed through a separate process.
                                                    and existing customers. A second                        with other allottees’ loads to schedule                 G. Customers must pay all applicable
                                                    resource pool is proposed starting on                   and deliver to a minimum load of 1                    rates and charges in the manner and
                                                    January 1, 2040. The second resource                    MW.                                                   within the time prescribed in the
                                                    pool will consist of 1 percent of the                   4. Allocation Criteria                                contract.
                                                    power resource available after 2039.                       Western proposes to apply the                        H. A written commitment to the
                                                    Allocations for the resource pools will                 following Allocation Criteria to all                  Custom Product will be required on or
                                                    be determined through a separate public                 applicants receiving a resource pool                  before January 1, 2023. Western may
                                                    process at a later date.                                allocation under the Marketing Plan.                  extend the final commitment dates for
                                                    2. Proposed Resource Pool Amount                           a. Allocations will be made in                     the Custom Product.
                                                                                                            amounts as determined solely by                         I. Contracts will include clauses
                                                       The 2025 Resource Pool will initially                Western in exercise of its discretion                 specifying criteria that customers must
                                                    consist of 2 percent of the power                       under Reclamation Law and considered                  meet on a continuous basis to be eligible
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                                                    resources available after 2024. Should                  to be in the best interest of the U.S.                to receive electric service from Western.
                                                    any Base Resource become available                      Government.                                             J. Upon request, Western shall
                                                    because of Sections IV.A.2 and IV.A.3                      b. Allocations will be based on the                provide, or assist each new and existing
                                                    above, Western will, using its                          applicant’s load during the calendar                  customer in obtaining transmission
                                                    discretion, allocate the additional Base                year prior to the Call for Applications or            arrangements for delivery of power
                                                    Resource at that time. Western will, at                 the amount requested, whichever is less.              marketed under the Marketing Plan;
                                                    its discretion, allocate a percentage of                   c. An allottee will have the right to              nonetheless, each entity is ultimately
                                                    the 2025 Resource Pool to applicants                    purchase power from Western only                      responsible for obtaining its own


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                                                    27438                             Federal Register / Vol. 81, No. 88 / Friday, May 6, 2016 / Notices

                                                    delivery arrangements to its load.                      customers/entities, in accordance with                requirements (capacity and energy) up
                                                    Transmission service over the CVP                       the following:                                        to its right to the MEFPC at the Base
                                                    system will be provided in accordance                      A. The MEFPC will be calculated                    Resource rate. If there is more than one
                                                    with Section VII of this Proposed Plan.                 separately for the New Melones Project,               first preference customer in a county of
                                                       K. Contracts shall provide for Western               Calaveras and Tuolumne Counties, and                  origin, or a first preference entity in that
                                                    to furnish electric service effective                   the Trinity River Division (TRD), Trinity             county makes a request for power,
                                                    January 1, 2025, through December 31,                   County (first preference projects). To                Western reserves the right to establish a
                                                    2054.                                                   determine the 25 percent of additional                maximum amount of power available to
                                                       L. Specific products and services may                energy made available to the CVP as a                 each first preference customer from the
                                                    be provided for periods of time as                      result of the construction of each of                 MEFPC. Payment for full requirements
                                                    agreed to in the electric service contract.             these projects, Western proposes to use               service will be based on usage.
                                                       M. Contracts shall incorporate                       the average of the previous 20 years of                  E. A first preference entity may
                                                    Western’s standard provisions for                       historical annual generation. The TRD                 exercise its right to use a portion of the
                                                    electric service contracts, integrated                  MEFPC includes generation from                        MEFPC by providing written notice to
                                                    resource plans, and General Power                       Trinity, Carr, and Spring Creek                       Western at least 18 months prior to the
                                                    Contract Provisions, as determined by                   Powerplants and a portion of the                      anniversary date of the first preference
                                                    Western.                                                Keswick Powerplant generation. Based                  project located in its county. The
                                                       N. Contracts will include a clause that              on the most current information                       anniversary date is the successive fifth
                                                    allows Western to reduce or rescind a                   available, this calculation results in an             year anniversary of the date the
                                                    customer’s allocation percentage, upon                  estimated MEFPC of 122,800 MWh                        Secretary of the Interior declared the
                                                    90 days’ notice, if Western determines                  available from the New Melones Project,               availability of power from the
                                                    that (1) the customer is not using this                 and an estimated MEFPC of 361,500                     powerplants in the counties of origin.
                                                    power to serve its own loads, except as                 MWh available from the TRD. Western                   New applications for service to begin on
                                                    otherwise specified in Section III; or (2)              proposes to recalculate the MEFPC                     January 1, 2025, must be received 18
                                                    the allocation amounts are consistently                 every 5 years, with the initial                       months prior to January 1, 2022 (i.e.,
                                                    greater than the customer’s maximum                     recalculation pertaining to this                      July 1, 2020), for Trinity County and 18
                                                    load.                                                   Proposed Plan completed by June 1,                    months prior to April 5, 2022 (i.e.,
                                                       O. Any power not under contract may                  2024.                                                 October 5, 2020), for Calaveras and
                                                    be allocated at any time, at Western’s                     B. Upon recalculation, if the MEFPC                Tuolumne Counties. Other anniversary
                                                    sole discretion, or sold as deemed                      from a first preference project is 10                 years applicable to this Proposed Plan
                                                    appropriate by Western.                                 percent above or below the currently                  are 2027, 2032, 2037, 2042, 2047, and
                                                       P. Contracts will include a clause                   effective MEFPC from that first                       2052.
                                                    providing for Western to adjust the                     preference project, the MEFPC will be                    F. If the request of a first preference
                                                    customers’ allocation percentage for the                adjusted to reflect that increase or                  customer/entity for power, including
                                                    2040 Resource Pool.                                     decrease. Western will notify affected                adjustment for losses, is greater than the
                                                       Q. Contracts may include a clause                    first preference customers at least 6                 remaining MEFPC from that county’s
                                                    providing for alternative funding                       months before making an adjustment to                 first preference project, then Western
                                                    arrangements, including Net Billing, Bill               the MEFPC. If recalculation reduces the               will allocate the remaining MEFPC to
                                                    Crediting, Reimbursable Financing, and                  MEFPC to an amount less than the load                 the first preference customer/entity first
                                                    advance payment.                                        previously served, Western may, upon                  making a request for a power allocation
                                                                                                            request and at its discretion, make                   or a justified increase in its allocation
                                                    VI. First Preference Entitlement and
                                                                                                            purchases necessary to replace that                   percentage.
                                                    Allocation
                                                                                                            amount of power no longer available.                     G. Power allocated to first preference
                                                       The Trinity River Division Act and                   The costs for all such purchases made                 customers/entities in Tuolumne and
                                                    the New Melones Project provisions of                   on behalf of a first preference customer              Calaveras Counties will be subject to the
                                                    the Flood Control Act of 1962 (Acts)                    will be passed on to that first preference            following additional conditions:
                                                    specify that contracts for the sale and                 customer.                                                1. Tuolumne and Calaveras Counties
                                                    delivery of the additional electric                        C. An allocation made to a first                   shall each be entitled to one-half of the
                                                    energy, available from the CVP power                    preference customer/entity under the                  New Melones Project MEFPC.
                                                    system as a result of the construction of               Final Plan will be based on the power                    2. If first preference customers in
                                                    the plants authorized by these Acts and                 requirements of that first preference                 either Tuolumne County or Calaveras
                                                    their integration into the CVP system,                  customer/entity. The sum of allocations               County are not using their county’s full
                                                    shall be made in accordance with                        of first preference power, including                  one-half share, and a first preference
                                                    preferences expressed in Federal                        losses, shall not exceed the MEFPC from               customer/entity in the other county
                                                    Reclamation Laws. These Acts also                       each first preference project, or a county            requests power in an amount exceeding
                                                    provide that a first preference of up to                of origin’s share of the MEFPC, except                that county’s one-half share, then
                                                    25 percent of the additional energy shall               as allowed under Section VI.7 below.                  Western will allocate the unused power,
                                                    be given, under Federal Reclamation                        D. Western proposes to provide full                on a withdrawable basis, to the
                                                    Law, to preference customers in the                     requirements service as described below               requesting first preference customer/
                                                    counties of origin (Trinity, Tuolumne,                  to first preference customers. The first              entity. Such power may be withdrawn
                                                    and Calaveras), for use in those                        preference customer will be responsible
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                                                                                                                                                                  for use by a first preference customer/
                                                    counties, who are ready, willing, and                   for transformation and transmission                   entity in the county not using its full
                                                    able to enter into contracts for the                    losses to the first preference customer               one-half share upon 6 months’ written
                                                    energy.                                                 delivery point. Transmission losses                   notice from Western.
                                                       Western proposes to calculate and                    shall include losses for CVP                             H. Trinity Public Utilities District is
                                                    allocate the maximum entitlements of                    transmission and third-party                          currently the sole recipient of the TRD’s
                                                    first preference customers (MEFPC),                     transmission.                                         first preference rights.
                                                    which is the maximum amount of                             Western will provide the first                        I. Transmission service will be
                                                    energy available to first preference                    preference customer with its full power               provided in accordance with applicable


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                                                                                      Federal Register / Vol. 81, No. 88 / Friday, May 6, 2016 / Notices                                                  27439

                                                    laws and Section VII of this Proposed                   Authorities                                           Executive Order 12866; accordingly, no
                                                    Plan.                                                     Western developed this Proposed                     clearance of this Federal Register notice
                                                      J. For planning purposes, first                       Plan in accordance with its power                     by the Office of Management and
                                                    preference customers may be required to                 marketing authorities pursuant to the                 Budget is required.
                                                    provide forecasts and other information                 Department of Energy Organization Act                  Dated: April 22, 2016.
                                                    required by Western as set forth in the                 (42 U.S.C. 7101, et seq.); the                        Mark A. Gabriel,
                                                    electric service contract.                              Reclamation Act of June 17, 1902 (ch.                 Administrator.
                                                      K. The general criteria and contract                  1093, 32 Stat. 388), as amended and                   [FR Doc. 2016–10620 Filed 5–5–16; 8:45 am]
                                                    principles set forth in Sections V.A, C                 supplemented by subsequent                            BILLING CODE 6450–01–P
                                                    through I, K, M, and O of this Proposed                 enactments, particularly section 9(c) of
                                                    Plan will apply to first preference                     the Reclamation Project Act of 1939 (43
                                                    customers.                                              U.S.C. 485(c)); and other acts
                                                                                                            specifically applicable to the projects               ENVIRONMENTAL PROTECTION
                                                    VII. Transmission Service                               involved.                                             AGENCY

                                                       Allottees and customers must secure                  Regulatory Procedure Requirements                     [EPA–HQ–OPP–2009–1017; FRL–9943–66]
                                                    all necessary transmission service to
                                                                                                            Review Under the Paperwork Reduction                  Notice of Receipt of Requests To
                                                    deliver Federal power. Western will
                                                                                                            Act                                                   Voluntarily Cancel Pesticide
                                                    provide transmission service to deliver
                                                                                                               In accordance with the Paperwork                   Registrations and Amend
                                                    the Base Resource over the CVP
                                                                                                            Reduction Act of 1980 (44 U.S.C. 3501,                Registrations To Terminate Certain
                                                    transmission system. Western will work
                                                                                                            et seq.), Western has received approval               Uses
                                                    with allottees and customers to secure
                                                    bundled or unbundled transmission                       from the Office of Management and                     AGENCY: Environmental Protection
                                                    services as appropriate beyond its CVP                  Budget for the collection of customer                 Agency (EPA).
                                                    transmission system in conjunction                      information in this rule, under control               ACTION: Notice.
                                                    with its power sales in a manner                        number 1910–5136, which expires on
                                                    consistent with Federal Energy                          September 30, 2017.                                   SUMMARY:   In accordance with the
                                                    Regulatory Commission orders,                           Regulatory Flexibility Analysis                       Federal Insecticide, Fungicide, and
                                                    legislated mandates, or California                                                                            Rodenticide Act (FIFRA), EPA is issuing
                                                    Independent System Operator                                The Regulatory Flexibility Act of 1980             a notice of receipt of requests by
                                                    agreements. While Western will work                     (5 U.S.C. 601, et seq.), requires                     registrants to voluntarily cancel certain
                                                    with allottees and customers, it is the                 preparation of an initial regulatory                  pesticide registrations and amend one
                                                    allottees and customers obligations to                  flexibility analysis whenever an agency               pesticide registration. The amendment
                                                    secure all necessary transmission                       is required by 5 U.S.C. 553, or any other             request would delete the following uses
                                                    service.                                                law, to publish general notice of                     of MGK 264: Outdoor ground
                                                                                                            proposed rulemaking for any proposed                  applications (tall grass, shrubbery,
                                                       Generally, Western will market
                                                                                                            rule. A final regulatory flexibility                  around lawns, corrals, feed lots, swine
                                                    surplus transmission capacity on the
                                                                                                            analysis is required whenever the                     lots, zoos); and direct applications to
                                                    CVP and COTP available under
                                                                                                            agency promulgates a final rule under 5               beef cattle, dairy cattle, and horses. The
                                                    Western’s Open Access Transmission
                                                                                                            U.S.C. 553, after being required by that              product cancellation requests listed
                                                    Tariff. The legislation authorizing the
                                                                                                            section or any other law to publish a                 herein would not terminate the last
                                                    PACI provides for the Secretary to
                                                                                                            general notice of proposed rulemaking.                products registered for these pesticides
                                                    market surplus available transmission
                                                                                                            Western has determined that the                       for use in the United States. EPA
                                                    capacity on the PACI at equitable rates
                                                                                                            analytical requirements of the                        intends to grant these cancellation and
                                                    to aid and benefit the CVP. Western will
                                                                                                            Regulatory Flexibility Act do not apply               amendment requests at the close of the
                                                    determine the use of its transmission
                                                                                                            to this rulemaking because it is a                    comment period for this announcement
                                                    resources concurrently with further
                                                                                                            rulemaking involving services                         unless the Agency receives substantive
                                                    development of the products and
                                                                                                            applicable to public property.                        comments within the comment period
                                                    services under this Proposed Plan.
                                                    Specific terms and conditions for                       Environmental Compliance                              that would merit its further review of
                                                    transmission will be provided for in                                                                          the requests, or unless the registrants
                                                                                                              In compliance with the National                     withdraw their requests. If these
                                                    future service agreements. Western will                 Environmental Policy Act (NEPA) (42
                                                    develop transmission rates under a                                                                            requests are granted, any sale,
                                                                                                            U.S.C. 4321–4370), Council on                         distribution, or use of products listed in
                                                    separate proceeding.                                    Environmental Quality NEPA                            this notice will be permitted after the
                                                    VIII. Changes in the Electric Utility                   implementing regulations (40 CFR parts                registration has been cancelled or
                                                    Industry                                                1500–1508), and DOE NEPA                              amended only if such sale, distribution,
                                                                                                            implementing regulations (10 CFR part                 or use is consistent with the terms as
                                                      Western recognizes that there have                    1021), Western completed a Categorical
                                                    been, and continue to be, significant                                                                         described in the final order.
                                                                                                            Exclusion (CX). Since Western is
                                                    changes in the electric utility industry.               reallocating its existing resources and is            DATES: Comments must be received on
                                                    In order to address this concern,                                                                             or before June 6, 2016.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                            not planning to increase its generation
                                                    Western is proposing, in collaboration                  or transmission under this Proposed                   ADDRESSES: Submit your comments,
                                                    with its customers, to include the ability              Plan, a CX is the appropriate level of                identified by docket identification (ID)
                                                    to make changes in how the Federal                      environmental review.                                 number EPA–HQ–OPP–2009–1017, by
                                                    resource is marketed if there is deemed                                                                       one of the following methods:
                                                    a benefit to Western and its customers.                 Determination Under Executive Order                     • Federal eRulemaking Portal: http://
                                                    Any changes implemented would be                        12866                                                 www.regulations.gov. Follow the online
                                                    done through negotiation and revision                     Western has an exemption from                       instructions for submitting comments.
                                                    to individual customer contracts.                       centralized regulatory review under                   Do not submit electronically any


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Document Created: 2016-05-06 00:29:08
Document Modified: 2016-05-06 00:29:08
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of proposed plan.
DatesOn June 1, 2016, beginning at 1 p.m., PT, Western will hold a public information forum to present the Proposed Plan and respond to questions from the public. On July 12, 2016, beginning at 1 p.m., PT, Western will hold a public comment forum to receive oral and written comments on the Proposed Plan. To assure consideration, written comments on the Proposed Plan must be received or postmarked by 5 p.m. August 4, 2016.
ContactMs. Sonja Anderson, Vice President of Power Marketing, Sierra Nevada Customer Service Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, CA 95630, by email at [email protected], or by telephone (916) 353-4421.
FR Citation81 FR 27433 

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