Notice2021-19239
2021 Continuation of Temporary Power Sales Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 7, 2021
Issuing agencies
Energy DepartmentSouthwestern Power Administration
Abstract
Southwestern Power Administration (Southwestern) is accepting new applications under its Temporary Power Sales Program for 2021. Electric utility organizations interested in participating in the Temporary Power Sales Program should notify Southwestern of their interest by providing the information requested in the enclosed Resource Data Form B-2 and/or Resource Data Form L-2 to Southwestern.
Full Text
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<title>Federal Register, Volume 86 Issue 170 (Tuesday, September 7, 2021)</title>
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[Federal Register Volume 86, Number 170 (Tuesday, September 7, 2021)]
[Notices]
[Pages 50105-50109]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-19239]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
2021 Continuation of Temporary Power Sales Program
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice that new applications will be accepted for the
Southwestern Power Administration Temporary Power Sales Program for
2021.
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SUMMARY: Southwestern Power Administration (Southwestern) is accepting
new applications under its Temporary Power Sales Program for 2021.
Electric utility organizations interested in participating in the
Temporary Power Sales Program should notify Southwestern of their
interest by providing the information requested in the enclosed
Resource Data Form B-2 and/or Resource Data Form L-2 to Southwestern.
DATES: Completed forms (Resource Data Form B-2 and/or Resource Data
Form L-2) will be accepted beginning on September 7, 2021 and ending on
October 22, 2021.
ADDRESSES: Completed forms and any questions or comments should be
submitted to Ms. Fritha Ohlson, Senior Vice President and Chief
Operating Officer (COO), Southwestern Power Administration, U.S.
Department of Energy, 1 W 3rd St., Suite 1600, Tulsa, Oklahoma 74103.
FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice
President/COO, 918-595-6684 or email: <a href="/cdn-cgi/l/email-protection#9dfbeff4e9f5fcb3f2f5f1eef2f3ddeeeaedfcb3faf2eb"><span class="__cf_email__" data-cfemail="305642594458511e5f585c435f5e70434740511e575f46">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Southwestern markets hydroelectric power
pursuant to section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s)
from 24 multi-purpose reservoir projects operated by the U.S. Army
Corps of Engineers. These projects are located in Arkansas, Missouri,
Oklahoma, and Texas. The Southwestern marketing area includes these
states, plus Kansas and Louisiana.
Program Background
On June 18, 1987, Southwestern implemented its Temporary Power
Sales Program, hereinafter referred to as ``the Program'' (52 FR
23206). The notice implementing the Program is hereinafter referred to
as ``the 1987 FRN.'' The Program allows existing Southwestern customers
to make all or a portion of their allocated federal hydroelectric power
and energy from Southwestern (allocation) available to Southwestern for
temporary sale to others in the following priority: (1) Public body and
cooperative electric utility systems that are present or potential
customers (including joint action agencies and any other public body
and/or cooperative electric utility organizations that may be able to
distribute the benefits of federal hydroelectric power and energy to
said public body and cooperative electric utility systems), and (2)
electric utilities other than public body and/or cooperative electric
utility systems to be selected if no public body or cooperative
electric utility systems are available to purchase such federal
hydroelectric power and energy. See 52 FR at 23206 at 23207. Entities
participating in the Program are referred to as ``loaners'' and
``borrowers.''
In response to the 1987 FRN, Southwestern received nine borrower
applications and two loaner applications within the period of notice of
the 1987 FRN, which began June 18, 1987 and ended August 31, 1987. Of
the applications received, Southwestern made one match between two
loaners and one borrower for a total of 0.7 megawatts (MW) for a term
to continue on a year-to-year basis until terminated by the loaner, the
borrower, or Southwestern. (The match was ultimately dissolved on
August 17, 2005.)
On October 14, 1988, Southwestern sent a letter to its customers
soliciting additional interest in the Program and indicating
Southwestern's intention to maintain electric utility data on a
biennial basis, with the lists of loaners and borrowers to be renewed
every two years.
In response to the October 14, 1988 letter, Southwestern received
two additional borrower applications and no additional loaner
applications. Implementation of the Program continued with two internal
memoranda to the file, the first dated August 9, 1989, and the second
dated January 17, 1992. These memoranda summarized the results of two
separate reviews. Both reviews acknowledged minimal interest in the
Program but recommended continuing the Program pending the
[[Page 50106]]
results of future reviews. Records indicate that no additional reviews
occurred until 2019.
2019 Review and Summary
Southwestern initiated its 2019 review of the Program after
receiving an offer for a loan from the Southwestern customers receiving
the output of the Robert D. Willis Hydropower Project (Willis). These
customers offered all capacity and energy from Willis for loan for a
duration to be determined.
In response to the loan offer, Southwestern contacted the six
remaining participants in the Program to solicit their interest in the
output of Willis. All six participants declined.
On October 25, 2019, Southwestern announced a continuation of the
Program, including a call for new applicants (84 FR 57410). The 2019
notice continuing the Program is hereinafter referred to as ``the 2019
FRN.'' Southwestern received 20 applications within the period of
notice of the 2019 FRN, which began October 25, 2019 and ended December
9, 2019. Of the applications received, Southwestern matched two pairs
of loaners and borrowers: One for 2.0 MW for a ten-year term, and one
for 1.6 MW for a seven-year term.
Southwestern also received applications after the period of notice
with the understanding that the applications may be eligible for
matching in the interim period between biennial reviews. In November
2020, Southwestern determined that it would postpone consideration of
these interim applications until the 2021 review. Applicants were
notified of this decision by letter dated December 7, 2020, which also
informed the applicants that their applications would remain on file.
Summary of Matching Methodology
Records indicate that, prior to the 2019 review, there appeared to
be no formal matching methodology other than consideration of
preference entity status, chronological receipt, and acceptance of
applications on an ad hoc basis. For the 2019 review, Southwestern
analyzed its existing marketing documents and identified main
principles that occurred throughout, including preference entity
status; distribution by state; widespread use; transmission; and
chronological receipt. Since the concept of preference entity status is
established in statutory authorities and within the Program itself, it
was considered first and foremost before applying the other principles.
After determining preference entity status, and starting with the
principle that occurred the most and working down the list,
Southwestern ranked the borrowers according to how well their
respective applications matched a given principle. For example, if a
borrower was located in the same state as a loaner, that borrower got a
credit for the ``distribution by state'' principle. This procedure was
followed until ties were broken between potential borrowers.
2021 Review and Proposed Program Change
Although Southwestern will continue to apply the principles
established in the 2019 review to its 2021 review, Southwestern has
identified a need to further clarify how it establishes ``chronological
receipt.'' For the purposes of the 2021 matching process, Southwestern
will determine chronological receipt as follows:
1. The six entities currently considered active under the 1987 FRN
will have a chronological receipt date assigned in one of two ways: If
an entity submitted a new application under the 2019 FRN, that entity's
application will be assigned the chronological receipt date of the new
application. If an entity did not submit a new application under the
2019 FRN, that entity's existing application will be assigned a new
chronological receipt date of April 6, 2021, which is the date
Southwestern began its 2021 review.
2. All entities that submitted applications under the 2019 FRN
during the period of notice and that have not voluntarily withdrawn
their respective applications will remain in the Program with their
original chronological receipt dates.
3. All entities that submitted applications outside the period of
notice of the 2019 FRN will remain in the Program with their original
chronological receipt dates.
4. All entities that submit new applications in response to this
Federal Register notice will be assigned new chronological receipt
dates that will supersede any previous receipt date.
At the conclusion of the 2021 matching process, Southwestern
intends to implement the following changes to simplify the Program,
increase transparency, and reduce unnecessary confusion:
1. All unmatched applicants will be withdrawn from the Program and
are free to re-apply during any future period of notice.
2. Southwestern will no longer consider applications submitted
outside the period of notice of this or any future Federal Register
notice.
Procedures for Applying to the Program
Interested parties are requested to complete Resource Data Forms
containing information pertinent to the Program. The Resource Data
Forms will be accepted during the period of notice specified in this
Federal Register notice (see DATES). Resource Data Forms received after
that period will not be accepted. Receipt date of a Resource Data Form
will be based on the earliest date Southwestern received the
transmittal instrument conveying the Resource Data Form: For example,
the earlier of the ``Received'' date of an email if conveyed through
email; the received date stamp from Southwestern's mail room of a hard
copy letter if conveyed through the U.S. Mail; or the received log date
from Southwestern's mail room of a package or letter if conveyed
through a delivery service or certified U.S. Mail.
Each applicant will be sent a confirmation from Southwestern of the
receipt of its application, and the confirmation will include the
entity name to be associated with the application, the loan or borrow
details, and the date of receipt. Applicants will be asked to concur
with the confirmation in writing.
Following the 2021 matching process, notification of the results
will be sent to all applicants. The notification will include a summary
of matches made, a notification that all applications are withdrawn
from the Program as of the date of the notification, and an
announcement that new applications will be solicited via Federal
Register notice following the next review, tentatively scheduled for
2023.
Submission of Resource Data Forms in no way obligates an applicant
to loan or borrow under the Program. If a match is identified,
Southwestern will work with the loaner and borrower to document the
sale. Conversely, submission of Resource Data Forms in no way obligates
Southwestern to make any sales under the Program. Such sales will be
made at the sole discretion of Southwestern.
Allocations made available to Southwestern under the Program will
be sold on a temporary basis, and for an initial period of not less
than one (1) year, provided the selected borrower(s) have, or must be
able to arrange, the transmission rights to receive such federal
hydroelectric power and energy.
Therefore, in accordance with the priority expressed herein,
Southwestern is hereby issuing this ``Notice that new applications will
be accepted for the Southwestern Power Administration Temporary Power
Sales Program.''
[[Page 50107]]
Electric utility organizations interested in participating in the
Program should notify Southwestern of their interest by providing the
information requested in the enclosed Resource Data Form B-2 and/or
Resource Data Form L-2 to Southwestern (see DATES). To assist
Southwestern in best matching loaners and borrowers, applicants are
encouraged to use the ``Additional information'' section at the bottom
of the forms to describe specific resources they want to borrow or
loan. Fillable versions of these forms will also be made available on
the Southwestern website at <a href="https://www.swpa.gov">https://www.swpa.gov</a>.
Based on the responses received, Southwestern, at its sole
discretion, may elect to hold one or more public meetings to afford all
responders equal opportunity to have their responses addressed.
Environmental Impact
Southwestern previously determined that the action of creating the
Program and accepting new applications thereunder does not have a
significant effect on the environment since peaking sales made under
the Program will merely replace other peaking sales and resulting
reservoir operations will not be affected. Southwestern has further
determined that the action fits within the class of categorically
excluded actions as listed in appendix B to subpart D of 10 CFR part
1021, DOE's Implementing Procedures and Guidelines of the National
Environmental Policy Act of 1969, as amended (42 U.S.C. 4321-4347):
Categorical exclusions applicable to B4.1, ``Contracts, policies, and
marketing and allocation plans for electric power,'' and B4.4, ``Power
marketing services and activities.'' On May 26, 2021, Southwestern
determined that categorical exclusions B4.1 and B4.4 apply to the
current action.
Signing Authority
This document of the Department of Energy was signed on August 30,
2021, by Mike Wech, Administrator, Southwestern Power Administration,
pursuant to delegated authority from the Secretary of Energy. That
document, with the original signature and date, is maintained by DOE.
For administrative purposes only, and in compliance with requirements
of the Office of the Federal Register, the undersigned DOE Federal
Register Liaison Officer has been authorized to sign and submit the
document in electronic format for publication, as an official document
of DOE. This administrative process in no way alters the legal effect
of this document upon publication in the Federal Register.
Signed in Washington, DC, on September 1, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
BILLING CODE 6450-01-P
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[FR Doc. 2021-19239 Filed 9-3-21; 8:45 am]
BILLING CODE 6450-01-C
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