Notice2023-05486
Notice of Final 2025 Provo River Project Marketing Plan and Call for 2025 Resource Pool Applications
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Published
March 17, 2023
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
Western Area Power Administration (WAPA), a federal Power Marketing Administration of the Department of Energy (DOE), Colorado River Storage Project (CRSP) Management Center (MC) announces its Final 2025 Provo River Project Marketing Plan (Marketing Plan) and Call for 2025 Resource Pool Applications (Call for Applications) for an allocation of federal energy from the Provo River Project (PRP). On September 30, 2024, all existing PRP energy sales contracts (Contracts) will expire. This notice responds to comments received on the Proposed 2025 Provo River Project Marketing Plan (Proposed Plan) published in the Federal Register June 1, 2022, and sets forth the Marketing Plan. The Marketing Plan specifies the terms and conditions under which WAPA will market energy from the PRP beginning October 1, 2024, through September 30, 2054. This Marketing Plan supersedes the previous PRP marketing plan. WAPA will offer new Contracts for the sale of energy to existing customers (Customers). The Marketing Plan also establishes one resource pool (2025 Resource Pool) of up to 3 percent of the net marketable resource under contract at the time of reallocation to be available for eligible new preference entities. Eligible preference entities who wish to apply for a new allocation from the PRP must submit a formal application using the Applicant Profile Data (APD) application form and satisfy the criteria as described in this Federal Register notice.
Full Text
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<title>Federal Register, Volume 88 Issue 52 (Friday, March 17, 2023)</title>
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[Federal Register Volume 88, Number 52 (Friday, March 17, 2023)]
[Notices]
[Pages 16433-16439]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05486]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Notice of Final 2025 Provo River Project Marketing Plan and Call
for 2025 Resource Pool Applications
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Final 2025 Provo River Project Marketing Plan and
Call for 2025 Resource Pool Applications.
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SUMMARY: Western Area Power Administration (WAPA), a federal Power
Marketing Administration of the Department of Energy (DOE), Colorado
River Storage Project (CRSP) Management Center (MC) announces its Final
2025 Provo River Project Marketing Plan (Marketing Plan) and Call for
2025 Resource Pool Applications (Call for Applications) for an
allocation of federal energy from the Provo River Project (PRP). On
[[Page 16434]]
September 30, 2024, all existing PRP energy sales contracts (Contracts)
will expire. This notice responds to comments received on the Proposed
2025 Provo River Project Marketing Plan (Proposed Plan) published in
the Federal Register June 1, 2022, and sets forth the Marketing Plan.
The Marketing Plan specifies the terms and conditions under which WAPA
will market energy from the PRP beginning October 1, 2024, through
September 30, 2054. This Marketing Plan supersedes the previous PRP
marketing plan. WAPA will offer new Contracts for the sale of energy to
existing customers (Customers). The Marketing Plan also establishes one
resource pool (2025 Resource Pool) of up to 3 percent of the net
marketable resource under contract at the time of reallocation to be
available for eligible new preference entities. Eligible preference
entities who wish to apply for a new allocation from the PRP must
submit a formal application using the Applicant Profile Data (APD)
application form and satisfy the criteria as described in this Federal
Register notice.
DATES: The Marketing Plan will become applicable April 17, 2023. The
Call for Applications will begin on that same date. WAPA must receive a
completed and signed application using the APD form by 4:00 p.m., MDT,
on June 15, 2023 to be assured of consideration by WAPA.
ADDRESSES: Preference entities interested in applying for an allocation
may submit a completed hard copy APD application form with a wet
signature to: Mr. Rodney G. Bailey, CRSP Manager, CRSP MC, Western Area
Power Administration, 1800 South Rio Grande Avenue, Montrose, CO 81401.
APD application forms with an e-signature may be emailed to <a href="/cdn-cgi/l/email-protection#db8ba9b4adb4f696baa9b0beafb2b5bc9bacbaabbaf5bcb4ad"><span class="__cf_email__" data-cfemail="c696b4a9b0a9eb8ba7b4ada3b2afa8a186b1a7b6a7e8a1a9b0">[email protected]</span></a>. All APD forms must be received by WAPA within the
time required in the DATES Section, herein.
FOR FURTHER INFORMATION CONTACT: Mr. Randolph Manion, CRSP Contracts
and Energy Services Manager, <a href="/cdn-cgi/l/email-protection#d69bb7b8bfb9b896a1b7a6b7f8b1b9a0"><span class="__cf_email__" data-cfemail="78351916111716380f190819561f170e">[email protected]</span></a>, 720-201-3285, or fax at
970-240-6282. Written requests for information should be mailed to the
CRSP MC in the ADDRESSES section, herein. Information on development of
the Marketing Plan and ADP application form can be found at <a href="https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/2025-provo-power-marketing-plan.aspx">https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/2025-provo-power-marketing-plan.aspx</a>.
SUPPLEMENTARY INFORMATION:
Background
WAPA is responsible for marketing power from the PRP, which is done
independently from the other projects marketed by WAPA's CRSP,
including the Salt Lake City Area Integrated Projects (SLCA/IP),
Olmsted Project, and the Falcon-Amistad Project. In addition to
marketing power from the PRP and other projects, WAPA's CRSP operates
approximately 2,316 miles of transmission lines and associated
infrastructure related to these federal hydroelectric projects across
Arizona, New Mexico, Colorado, Utah, and Wyoming.
The PRP is a small water development project, with a powerplant, in
northern Utah. It was authorized by President Franklin D. Roosevelt, in
part, as a response to the Great Depression and a severe drought that
devasted Utah's agriculture and threatened municipal water supplies in
the 1930s. PRP's primary function is to provide water for irrigation,
municipal, and industrial purposes in Salt Lake and Utah Counties,
Utah. The Department of the Interior, Bureau of Reclamation
(Reclamation) finished construction of the Deer Creek Dam in 1938 and
the Deer Creek Powerplant in 1958, which included two 2.475-megawatt
generators. On June 27, 1936, Reclamation signed contract number Ilr-
874 making the Provo River Water Users' Association (PRWUA) the
operator of the dam and responsible for repayment of the PRP. The
initial investment in the power facilities was repaid in 1984 but there
are ongoing costs associated with operation, maintenance, and
replacement (OM&R) of equipment.
Between October 15 and April 15, water may be diverted from the
adjacent Weber River Basin into the Provo River and stored in Deer
Creek Reservoir for irrigation purposes pursuant to the terms of the
1938 contract number Ilr-1082 between the PRWUA, PacifiCorp (formerly
Utah Power and Light Company), and Reclamation, among others. This
winter season diversion creates a loss of hydropower generation at the
Weber Powerplant on the Weber River, downstream from the diversion. As
a result, PacifiCorp, the owner of the Weber Powerplant, is reimbursed
for its energy losses caused by the diversion with PRP energy (Weber/
Provo Water Exchange). During this winter period, PRP generation above
the reimbursement amount for the Weber/Provo Water Exchange is marketed
by WAPA to PRP allottees as surplus energy. During the summer period,
the total available PRP generation is marketed by WAPA to PRP
allottees.
The Marketing Plan, herein, describes how CRSP Management Center
will market federal energy from the PRP beginning October 1, 2024,
through September 30, 2054. As part of the Marketing Plan, WAPA will
establish one 2025 Resource Pool of 3 percent of the net marketable
resource currently under contract to be available for eligible new
preference entities and Customers. The 2025 Resource Pool will be
allocated and under contract by October 1, 2024. WAPA, at its
discretion, will allocate a percentage of the 2025 Resource Pool to
selected applicant(s) that meet the Eligibility Criteria defined in the
Marketing Plan, herein. This allocation percentage will be multiplied
by the 2025 Resource Pool percentage to determine the applicant's
percentage of the resource pool. WAPA will publish a notice in the
Federal Register once those proposed allocations have been determined
(Proposed Allocations). The public will have an opportunity to comment
on the Proposed Allocations. After reviewing the comments, WAPA will
publish a notice of Proposed Allocations in the Federal Register. Once
the final 2025 Resource Pool allocations have been published, WAPA will
work with Customers and any new allottees to prepare and execute new
Contracts pursuant to the General Contract Principles as described in
this notice.
Response to Comments on the Proposed 2025 Provo River Project Marketing
Plan
During the public consultation and comment period, WAPA received
three letters and one email commenting on the Proposed Plan. In
addition, WAPA received one comment during the June 28, 2022, Public
Comment Forum. In preparing the Marketing Plan, WAPA reviewed and
considered all comments received during the public consultation and
comment period. The following is a summary of the comments received
during the consultation and comment period, and WAPA's responses to
those comments. Comments are grouped by subject and paraphrased for
brevity when it was possible to do so without affecting the meaning of
the statements.
A. Marketing Area Responses
Comment: One commenter stated they support the marketing area of
the two counties of Utah and Wasatch in the State of Utah.
Response: Thank you for this comment.
[[Page 16435]]
B. Resource Extensions and Resource Pool Allocations Responses
Comment: One commenter stated they support WAPA's proposal to
provide 95 percent of PRP's available energy to existing Customers
ensuring rights to a 2025 marketing allocation.
Response: WAPA appreciates this comment. WAPA plans to reduce the
proposed 5 percent Resource Pool to 3 percent, consistent with other
WAPA Region's marketing plans.
Comment: One commenter stated the PRP should be renewed and
continued at the same allocation percentages--and if new customers are
to be added, they suggest WAPA look no further than within the current
entities for these new customers. Furthermore, the current entities
have experienced significant load growth, some a 10-fold increase since
1995. If allocations are reduced to current entities, this would be
contrary to their needs.
Response: Thank you for this comment. WAPA appreciates the concern
with the reduction in current allocations. In response, WAPA is
limiting the Resource Pool to a total of 3 percent. However, a Resource
Pool is required to ensure consistency with the wide-spread use policy
to allow new applicants opportunity to receive an allocation.
Comment: One commenter asked if the entities receiving a percentage
of PRP are paying customers or do they just get the energy for free?
Response: Customers have an obligation to pay all the allocable
annual PRP powerplant expenses including an amount to assist the Provo
River Water Users' Association repayment to the United States original
investment in the PRP. In return, the Customers and any new allottees
will receive the marketable energy of the PRP.
C. Preference Entities Responses
Comment: No comments received.
Response: No responses provided.
D. Ready, Willing, and Able Responses
Comment: One commenter stated they support the marketing criteria
in the Proposed Plan; and as a preference entity serving the electrical
needs of six municipalities, they stand ready, willing, and able to
receive the power and energy from the PRP resource to meet continued
electricity load growth for their six member cities. They are prepared
to accept a new allocation under the terms and conditions of the
contract.
Response: Thank you for this comment.
E. Eligible Applicants Responses
Comment: One commenter stated if new allocations are to be given,
they should be the Customers with significant load growth.
Response: Existing Customers will have an opportunity to apply for
a percentage of the Resource Pool.
F. Contract Obligations Responses
Comment: No comments received.
Response: No responses provided.
G. Separate Contractual Arrangements With PacifiCorp Responses
Comment: No comments received.
Response: No response provided.
H. Contract Term Responses
Comment: One commenter requested a longer contract term. They
believed this will be helpful for planning for the future.
Response: WAPA appreciates this comment and agrees a longer
contract term will be more effective and efficient for everyone. WAPA
is lengthening the contract term to a fixed 30-year period.
I. Delivery Point Responses
Comment: No comments received.
Response: No responses provided.
J. Transmission Beyond Delivery Point Responses
Comment: No comments received
Response: No responses provided.
K. Regional Transmission Organization Responses
Comment: One commenter stated there is troubling language in
Section K of the Proposed Plan regarding regional transmission.
Response: Thank you for this comment. WAPA cannot foresee all
possible impacts due to PacifiCorp joining organized electricity
markets, such as a regional transmission organization. The language in
Section K attempts to strike a balance between unknown impacts and
WAPA's ability to address potential transmission impacts beyond the PRP
delivery point.
L. Rates and Payment Responses
Comment: No comments received.
Response: No responses provided.
M. General Comments Responses
Comment: One commenter stated the Summary Section of the Proposed
Plan provides the current PRP Marketing Plan expires September 30,
2024. The Marketing plan completed its purpose when power from Deer
Creek was allocated. The present contracts for the sale of that power
terminate September 30, 2024.
Response: Thank you for this comment.
Comment: One commenter stated they value their long-standing
working relationship with WAPA in managing the PRP facilities and
WAPA's efforts to solve challenges associated with drought and meeting
the growth for energy in the West.
Response: Thank you for this comment.
Comment: One commenter asked if Customers receive a fixed amount of
energy or an allocation?
Response: Customers will receive a percentage of the total PRP
marketable energy as an allocation.
Comment: One commenter noted the Proposed Plan stated the PRP
generation is sold to CRSP in the summer Season while it is, of course,
sold to customers.
Response: WAPA concurs with this comment and corrected the language
in the Marketing Plan.
Comment: One commenter stated the Proposed Plan referenced water
diverted for irrigation purposes should also emphasize Municipal and
Industrial purposes.
Response: WAPA concurs with this statement and highlighted this
point in the Marketing Plan.
Comment: One commenter stated the Proposed Plan provides, in part,
that ``applicants. . . . Will receive a percentage of available annual
winter. . .generation. . .''. However, the Proposed Plan provides that
``During this winter period, PRP generation above the reimbursement
amount is sold to WAPA's CRSP as non-firm surplus energy.''
Response: Thank you for this comment. WAPA corrected this statement
in the Marketing Plan to ``During this winter period, PRP generation
above the reimbursement amount is marketed by WAPA to PRP allottees as
surplus energy.''
Summary of Major Revisions to the Marketing Plan
WAPA revised the Marketing Plan, in part, to address comments
received during the public consultation and comment period. The
revisions are summarized as follows:
<bullet> Marketing Plan Section B: Resource Extension and Resource
Pool changed from 5 percent to 3 percent; and additional clarifying
language added to this section.
<bullet> Marketing Plan Section F: Contract Obligations clarifying
language added including the addition of language pertaining to
decreasing or increasing a Customer's allocation upon 180 days' notice;
and new language allowing Net Billing and Bill Crediting.
[[Page 16436]]
<bullet> Marketing Plan Section H: Contract Term changed from a 10-
year term with two automatic 5-year renewals to a fixed 30-year term,
October 1, 2024, through September 30, 2054.
<bullet> Marketing Plan Section K: Regional Transmission
Organization and other organized market activities sentence added ``. .
.with the understanding that WAPA holds the unilateral right to
ultimately agree or not agree to what those potential mitigation
efforts might be and each Customer is ultimately responsible for all
transmission costs associated with their allocation. . .''
<bullet> Marketing Plan added three new sections:
[cir] The addition of Section I: Acronyms and Definitions
[cir] Added Section III: Changes Due to Drought
[cir] Added Section IV: Call for 2025 Resource Pool Applications for
Power
2025 Provo River Project Marketing Plan and Marketing Criteria
The Marketing Plan addresses: (1) The available PRP energy to be
marketed after September 30, 2024, which is the termination date for
all existing PRP Contracts; (2) the general terms and conditions under
which the energy will be marketed October 1, 2024, through September
30, 2054, to Customers and new allottee(s); and (3) the criteria to
determine who will be eligible to receive allocations from the 2025
Resource Pool.
WAPA will continue a collaborative process with Customers and new
allotees in implementing the terms set forth in the Marketing Plan.
Within broad statutory guidelines, WAPA has discretion as to whom
and under what terms it will contract for the sale of federal power, as
long as preference is accorded to statutorily defined public bodies.
WAPA markets power in a manner that will encourage the most widespread
use at the lowest possible rates consistent with sound business
principles. All products and services provided under the Marketing Plan
will be subject to the operational requirements and constraints of the
PRP, transmission availability, and federal authorities.
I. Acronyms and Definitions
As used herein, the following acronyms and terms, whether singular
or plural, capitalized or not capitalized, shall have the following
meanings:
Allocation: An offer from WAPA to sell federal energy 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.
Base Resource: A percentage of the annual net marketable energy
output of the PRP rather than fixed quantities of energy as determined
by WAPA to be available for marketing after meeting any adjustments for
operation and maintenance power requirements. The annual energy output
is comprised of the available PRP generation from April through
September; surplus energy available from October through April, which
is PRP generation above the reimbursement amount for the Weber/Provo
Water Exchange.
Bill Crediting: Contractual provisions whereby payments due to WAPA
by a Customer shall be paid by a Customer to a third party when so
directed by WAPA.
CRSP: Colorado River Storage Project is a DOI project designed to
oversee the development of the water resources of the Upper Colorado
River Basin. The project provides hydroelectric power, flood control
and water storage for participating states along the upper portion of
the Colorado River and its major tributaries.
Contract Principles: Provisions of the Contracts, including WAPA's
General Power Contract Provisions.
CRSP Management Center: Is one of five regional offices within WAPA
responsible for marketing power from federal hydrogeneration
facilities.
Customer: An entity with a contract and receiving electric service
from the PRP.
Electric Utility Status: Means that a Preference entity that has
responsibility to meet load growth, has a distribution system, and is
ready, willing, and able to purchase federal power from WAPA on a
wholesale basis.
Eligibility Criteria: Conditions that must be met to qualify for an
allocation.
Energy: Measured in terms of the work it can do over a period of
time; electric energy is usually measured in kilowatt-hours (KWh) or
megawatt-hours (MWh).
GPCP: General Power Contract Provisions. Standard terms and
conditions included in WAPA's 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; 1 kilowatt equals 1,000 watts.
Marketing Area: The counties of Utah and Wasatch, within and to the
exterior of these county boundaries as established through an
administrative or political subdivision of a state Utah.
Marketing Plan: WAPA's final 2025 Power Marketing Plan for the PRP.
Megawatt (MW): A unit measuring the rate of production of
electricity; 1 megawatt equals 1 million watts.
Net Billing: Payments due to WAPA by a customer may be offset
against payments due to that customer by WAPA.
Power: Capacity and energy.
Preference: The requirements of Reclamation Law that provide for
preference in the sale of federal power be given to certain entities
such as governments (state, federal and Native American),
municipalities and other 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)). A
Native American applicant must be an ``Indian Tribe'' as that term is
defined in section 4 of the Indian Self Determination and Education
Assistance Act, as amended (25 U.S.C. 5304(e)).
Provo River Project (PRP): The Department of the Interior, Bureau
of Reclamation (Reclamation) constructed Deer Creek Dam (1938) and the
Deer Creek Powerplant (1958), which included two 2.475-megawatt
generators. On June 27, 1936, Reclamation signed contract number Ilr-
874 making the PRWUA the operator of the dam and responsible for
repayment of the PRP.
Reclamation Law: Refers to a series of federal laws with a lineage
dating back to the late 1800s. Viewed as a whole, those laws create the
framework under which WAPA markets power.
2025 Resource Pool: A pool of energy created from available net
marketable PRP power resources allocated to Customers.
WAPA: Western Area Power Administration, United States Department
of Energy, a federal Power Marketing Administration responsible for
marketing and transmitting federal power pursuant to Reclamation Law
and DOE Organization Act (42 U.S.C. 7101, et seq.).
II. Provo River Project Marketing Plan, General Criteria and Contract
Principles
The following criteria and contract principles apply to all
Contracts executed under the Marketing Plan:
[[Page 16437]]
A. Marketing Area
As defined in Section I., herein, the Marketing Area includes the
counties of Utah and Wasatch, within and to the exterior of these
county boundaries as established through an administrative or political
subdivision of a state Utah.
B. Resource Extensions and 2025 Resource Pool Allocations
WAPA will provide 97 percent of the net marketable PRP resources to
existing customers and establish a resource pool with the remaining
energy resources for new allocations.
1. Extension for Existing Customers
Starting October 1, 2024, existing Customers will have the right to
purchase 97 percent of the net marketable PRP energy resources through
September 30, 2054, under new Contracts. If existing Customer(s)
surrender some or all of its allocation prior to October 1, 2024, that
percentage of the total Base Resource will be returned to the remaining
existing Customers on a pro rata basis.
2. Pool Resources and Amount
The 2025 Resource Pool will consist of 3 percent of the net
marketable PRP energy resources available after September 30, 2024. The
2025 Resource Pool will be created by reducing existing Customers'
allocations by up to 3 percent. An estimated amount of net marketable
PRP energy resource that may be available for the Resource Pool as of
October 1, 2024, through September 30, 2054, is estimated at 517,306
kWh annually, an approximate figure based on the most recent 5-year net
marketable power average of 17,243,527 kWh annually. PRP energy not
under Contract by September 30, 2024, will be reallocated to the
existing Customers on a pro rata basis.
3. 2025 Resource Pool Allocations
WAPA will, at its discretion, allocate a percentage of the 2025
Resource Pool to applicants that meet the Eligibility and Allocation
Criteria. WAPA will take into consideration all existing federal
hydropower allocations an applicant is currently receiving when
determining each new 2025 Resource Pool allocation. Allocations from
the 2025 Resource Pool will be determined through processes described
in this Marketing Plan. The 2025 Resource Pool will be dissolved after
September 30, 2024, the closing date for executing new 2025 Resource
Pool Contracts.
4. 2025 Resource Pool Allocation Criteria
The following Allocation Criteria will apply to all applicants
seeking a 2025 Resource Pool Allocation under the Marketing Plan:
a. Allocations will be made in amounts as determined solely by WAPA
in the exercise of its discretion under Reclamation Law and considered
to be in the best interest of the U.S. Government.
b. Allocations will be determined based on all existing federal
hydropower allocations an applicant is currently receiving and 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 execute an electric service contract with WAPA
and comply with all the conditions in that contract.
d. Eligible Native American applicants will receive consideration
for an allocation consistent with this Marketing Plan and 25 U.S.C.
3505.
C. Preference Entities
As defined herein, includes Municipalities, rural electric
cooperatives, and political subdivisions including irrigation or other
districts, other governmental organizations, nonprofit organizations
financed in whole or in part by loans made pursuant to the Rural
Electrification Act of 1936, and federally recognized Native American
tribes are all preference entities in accordance with section 9(c) of
the Reclamation Project Act of 1939, as amended (43 U.S.C. 485h(c)). A
Native American applicant must be an ``Indian Tribe'' as that term is
defined in section 4 of the Indian Self Determination and Education
Assistance Act, as amended (25 U.S.C. 5304(e)).
D. Ready, Willing, and Able
Eligible applicants must be ready, willing, and able to receive and
distribute or consume energy from WAPA by October 1, 2024. ``Ready,
willing, and able'' means the applicant has the facilities needed for
the receipt of power or has made the necessary arrangements for
transmission and/or distribution service, and its power supply
contracts with third parties to permit the delivery of WAPA's power.
E. Eligible Applicants
WAPA will apply the following Eligibility Criteria to all
applicants seeking a 2025 Resource Pool Allocation under the Marketing
Plan:
1. Applicants must meet the preference requirements under Section
9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)(1)), as
amended and supplemented.
2. Applicants must be located within the Marketing Area.
3. Applicants that require energy for their own use must be ready,
willing, and able to receive and use federal energy.
4. Applicants that provide retail electric service must be ready,
willing, and able to receive and use the federal energy to provide
electric service to their customers, not for resale to other utilities.
5. Applicants must submit an application in response to the Call
for 2025 Resource Pool Applications by the deadline for receipt by WAPA
as specified in the DATES section, herein.
6. Native American applicants must be a Native American tribe as
defined in the Indian Self Determination Act of 1975 (25 U.S.C. 5304).
7. WAPA generally will not allocate power to applicants with loads
of less than 1 MW; however, allocations to applicants with loads of at
least 500 kW may be considered, provided the loads can be aggregated
with other allottees' loads to schedule and deliver to a minimum load
of 1 MW.
F. Contract Obligations
Eligible applicants that receive an allocation must execute
Contracts within 6 months of receiving a contract offer from WAPA,
unless WAPA agrees otherwise in writing. Furthermore, applicants must
comply with all terms and conditions stated within that contract,
including:
1. Clauses specifying criteria to receive electric service from
WAPA.
2. WAPA's standard provisions, policies and procedures for
Contracts, Integrated Resource Plans, General Power Contract
Provisions, and creditworthiness as determined by WAPA.
3. Clauses that allow WAPA to reduce or increase an allottee's or
Customer's allocation percentage, upon 180 days' notice, if WAPA
determines that (1) the allottee or Customer is not using this power to
serve its own loads; (2) the allocation amounts are consistently
greater than the Customer's maximum load; or (3) the Customer is
allotted a percentage of allocation returned to WAPA from another
Customer.
4. Clauses concerning any energy not under Contract may be
allocated at any time, at WAPA's sole discretion, or sold as deemed
appropriate by WAPA, consistent with federal law.
5. Clause providing for alternative funding arrangements, including
Net
[[Page 16438]]
Billing, Bill Crediting, Reimbursable Financing, and advance payment.
6. Contracts may include a clause providing for alternative funding
arrangements, including Net Billing, Bill Crediting, Reimbursable
Financing, and advance payment.
7. All power supplied by WAPA will be delivered pursuant to a
scheduling agreement negotiated between WAPA, Customers and the
allottees. Terms and conditions are subject to WAPA's final approval.
8. Clauses stipulating that Customers will pay for their percentage
of the Base Resource, pursuant to the formula rate described in Section
L, herein. Customers must pay all applicable rates and charges in the
manner and within the time prescribed in the Contract.
G. Separate Contractual Arrangements With PacifiCorp
Eligible applicants that receive an allocation must execute a
separate multi-party agreement among WAPA, Reclamation, Central Utah
Water Conservation District, PRWUA, and PacifiCorp to ensure repayment
of energy to PacifiCorp for the loss of power generation due to the
Weber/Provo Water Exchange.
H. Contract Term
Contracts shall provide for WAPA to furnish electric service
beginning October 1, 2024, through September 30, 2054.
I. Delivery Point
PRP is electrically interconnected to PacifiCorp's 138-kilovolt
(kV) transmission system (PacifiCorp's System). Eligible applicants
taking delivery of power from WAPA must do so at the PacifiCorp System
138-kV Hale Powerplant Switchyard, South Provo Tap, or Spanish Fork
Substation.
J. Transmission Beyond Delivery Point
Any associated transformation/transmission beyond the PacifiCorp
System 138-kV Hale Powerplant Switchyard, South Provo Tap, or Spanish
Fork Substation is the sole responsibility of the eligible applicants
that receive an allocation. Eligible applicants that receive an
allocation must have the necessary arrangements for transmission and/or
distribution service in place by the first effective day of the
Contract.
K. Regional Transmission Organization
Should PacifiCorp, as the balancing authority operator where the
PRP project is interconnected, join a full electricity market (e.g., a
Regional Transmission Organization and/or an Independent System
Operator), and in joining that market create unintended delivery point/
point-of-receipt financial impact to the PRP, and/or other unintended
financial impacts, such financial impacts will be included as part of
the PRP operation expenses. WAPA will work with the Customers and
eligible applicants that receive an allocation in good faith in an
attempt to minimize financial impacts with the understanding that WAPA
holds the unilateral right to ultimately agree or not agree to what
those potential mitigation efforts might be and each Customer is
ultimately responsible for all transmission costs associated with their
allocation.
L. Rates and Payment
PRP is a ``take all, pay all'' project. This means the annual
revenue requirement does not depend on the amount of energy available
each year. Each eligible applicant that receives an allocation will
receive a proportional share of the energy and will annually pay a
proportional share of the OM&R expenses, including a separate annual
payment to Reclamation for the PRP irrigation investments, in 12
monthly installments. WAPA establishes the rates for the PRP through a
separate public process. For additional information, see PRP's current
Rate Order No. WAPA-189.
III. Changes Due to Drought
WAPA recognizes there have been, and continue to be, significant
impacts caused from a persisting long-term drought in the Colorado
River Basin, and changes in the electric utility industry. To address
this concern, WAPA, in collaboration with its Customers, will include
the ability to make changes in how the federal resource is marketed if
there is deemed a benefit to WAPA and its Customers. Any changes
implemented would be done through negotiation and revision to
individual Customer and allotee Contracts.
IV. Call for 2025 Resource Pool Applications for Power
Through this Federal Register notice, WAPA formerly requests
applications from qualified preference entities wishing to purchase
power from PRP from October 1, 2024, through September 30, 2054.
Existing Customers do not need to submit an application unless they are
seeking to increase their allocation. All applicants must submit
applications using the APD application form identified in the SUMMARY
section, herein, so that WAPA has a uniform basis upon which to
evaluate the applications. To be considered, applicants must meet the
Eligibility Criteria contained in the Marketing Plan and must submit a
completed APD application form by the deadline specified in the DATES
section, herein. To ensure full consideration is given to all
applicants, WAPA will not consider requests for power or applications
submitted before publication of this Federal Register notice or after
the deadline specified in the DATES section, herein.
1. Application Profile Data (APD)
The APD application form has been approved by the Office of
Management and Budget under Control No. 1910-5136. APD application
forms are available upon request to the person listed in the FOR
FURTHER INFORMATION CONTACT section, herein; or may be accessed online
at: <a href="https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/2025-provo-power-marketing-plan.aspx">https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/2025-provo-power-marketing-plan.aspx</a>. A completed hard copy APD application form
with a wet signature may be submitted by U.S. Mail or other widely
accepted delivery service with certified tracking to: Mr. Rodney
Bailey, CRSP Manager, CRSP MC, Western Area Power Administration, 1800
South Rio Grande Avenue, Montrose, CO 81401. APD application forms with
an e-signature may be emailed to <a href="/cdn-cgi/l/email-protection#1646647960793b5b77647d73627f7871566177667738717960"><span class="__cf_email__" data-cfemail="3161435e475e1c7c50435a5445585f5671465041501f565e47">[email protected]</span></a>. It is each
applicant's responsibility to ensure it submits a timely application,
so WAPA receives the applications before the date and time stated in
the DATES section, herein.
Applicants must provide all information requested on the APD
application form, if available and applicable. Please indicate if the
requested information is not applicable or not available. WAPA may
request, in writing, additional information from any applicant whose
application is deficient. The applicant will have 10 business days from
postmark date on WAPA's request to provide the information. In the
event an applicant fails to provide all information to WAPA, the
application will not be considered.
The information in the APD application form should be answered as
if prepared by the entity/organization seeking the allocation of
federal power. The information collected under this process will not be
part of a system of records covered by the Privacy Act and may be
available under the Freedom of Information Act. If you are submitting
any confidential or business sensitive information, please mark such
[[Page 16439]]
information before submitting your application.
2. Recordkeeping Requirement
If WAPA accepts an application and the applicant receives an
allocation of federal energy, the applicant must keep all information
related to the APD for a period of 3 years after signing a Contract for
federal energy. There is no recordkeeping requirement for unsuccessful
applicants who do not receive an allocation of federal energy.
WAPA has obtained Office of Management and Budget Clearance Number
1910-5136 for collection of the above information. The APD is collected
to enable WAPA to properly perform its function of marketing limited
amounts of federal hydropower. The data supplied will be used by WAPA
to evaluate who will receive an allocation of federal power.
3. Contracting Process
After WAPA has evaluated the applications, WAPA will publish a
notice of Proposed Allocations in the Federal Register. The public will
have an opportunity to comment on the Proposed Allocations. After
reviewing the comments, WAPA will publish a notice of Final Allocations
in the Federal Register. WAPA will begin the contracting process with
the existing Customers and new allottees after publishing the final
allocations in the Federal Register, tentatively scheduled for the fall
of 2023. WAPA will offer a pro-forma contract for power allocated under
the Final 2025 Resource Pool Allocations. Allottees will be required to
execute a contract within 6 months of the Contract offer. Contracts
will be effective upon WAPA's signature, and service will begin on
October 1, 2024, and continue through September 30, 2054.
Authorities
WAPA developed the Marketing Plan in accordance with its power
marketing authorities pursuant to the following Acts of Congress:
Reclamation Act of June 17, 1902 (Pub. L. 57-161) (32 Stat. 388),
Reclamation Project Act of August 4, 1939 (Pub. L. 76-260) (53 Stat.
1187), Department of Energy Organization Act of August 4, 1977 (Pub. L.
95-91) (91 Stat. 565), Energy Policy Act of October 30, 1992 (Pub. L.
102-575) (106 Stat. 4600, 4605), as such acts may be supplemented or
amended.
Procedural Requirements
A. Review Under the National Environmental Policy Act (NEPA)
WAPA has determined that this proposed action fits within the
categorical exclusion listed in appendix B to subpart D of 10 CFR part
1021 (B4.1 contracts, policies, and marketing and allocation plans for
electric power). Categorically excluded projects and activities do not
require preparation of either an environmental impact statement or an
environmental assessment. A copy of the categorical exclusion
determination is available on the CRSP website at: <a href="https://www.wapa.gov/regions/CRSP/environment/Pages/environment.aspx">https://www.wapa.gov/regions/CRSP/environment/Pages/environment.aspx</a>.
B. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601 et seq.,
requires a federal agency to perform a regulatory flexibility analysis
whenever the agency is required by law to publish a general notice of
proposed rulemaking for any proposed rule, unless the agency can
certify that the rule will not have a significant economic impact on a
substantial number of small entities. For purposes of the RFA, a
``rule'' does not include ``a rule of particular applicability relating
to rates [and] services. . .or to valuations, costs or accounting, or
practices relating to such rates [and] services. . .'' (5 U.S.C. 601).
WAPA has determined that this action relates to services offered by
WAPA and, therefore, is not a rule within the purview of the RFA.
C. Review Under the Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3501, et seq.), WAPA has received approval from the Office of
Management and Budget for the collection of customer information in
this rule, under control number 1910-5136.
D. Determination Under Executive Order 12866
WAPA has an exemption from centralized regulatory review under
Executive Order 12866. Accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Signing Authority
This document of the Department of Energy was signed on March 2,
2023, by Tracey A. LeBeau, Administrator, Western Area 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 the Department of Energy. This administrative
process in no way alters the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on March 14, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-05486 Filed 3-16-23; 8:45 am]
BILLING CODE 6450-01-P
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</html>Indexed from Federal Register on March 17, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.