HomeMy WebLinkAboutAgenda Report - August 18, 1999 E-20%.w$at
CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: United States Department of Energy Western Area Power Administration Central
Valley Project, California Contract Amendment for a Right to Purchase Electric
Service Under the 2004 Power Marketing Plan with the City of Lodi
MEETING DATE: August 11, 1999
PREPARED BY: Electric Utility Director
ACTION: That the City Council authorize the City Manager to execute the
attached United States Department of Energy Western Area Power
Administration Central Valley Project, California Contract Amendment
for a Right to Purchase Electric Service Under the 2004 Power
Marketing Plan with the City of Lodi (Amendment).
BACKGROUND INFORMATION: Contract 92 -SAO -20056 (Primary Contract) by which the City of Lodi
purchases power from the Western Area Power Administration
(Western) will terminate on December 31, 2004.
Approval of this Amendment indicates the City's intent to secure its right to purchase power from Western
after termination of the Primary Contract and lists a series of commitment dates to which the City must
adhere. The actual terms and conditions of electric service will be set forth in a separate future contract.
FUNDING: Not applicable
Alan N. Vallow
Electric Utility Director
PREPARED BY: John Stone, Manager, Business Planning and Marketing
ANWILsnst
C: City Attomey
APPROVED:
H. ixo Flynn -- Ci anager
Amendment 2 to
Contract 92 -SAO -20056
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT AMENDMENT FOR
A RIGHT TO PURCHASE ELECTRIC SERVICE
UNDER THE 2004 POWER MARKETING PLAN
WITH
CITY OF LODI
Amendment 2 to
Contract 92 -SAO -20056
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT AMENDMENT FOR
A RIGHT TO PURCHASE ELECTRIC SERVICE
UNDER THE 2004 POWER MARKETING PLAN
WITH
CITY OF LODI
Section Table of Contents Page
1. PREAMBLE..........................................................................................................1
2. EXPLANATORY RECITALS.................................................................................1
3. AGREEMENT.......................................................................................................2
4. EFFECTIVE DATE AND TERM OF CONTRACT AMENDMENT .........................2
5. DEFINITION OF TERMS......................................................................................3
6. ADDITION OF SECTION 17 TO THE PRIMARY CONTRACT .............................3
7. PRIMARY CONTRACT TO REMAIN IN FULL FORCE AND EFFECT.................4
SIGNATURE CLAUSE
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Amendment 2 to
Contract 92 -SAO -20056
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT AMENDMENT FOR
A RIGHT TO PURCHASE ELECTRIC SERVICE
UNDER THE 2004 POWER MARKETING PLAN
WITH
CITY OF LODI
1. PREAMBLE: This Contract Amendment is made this day of
,19 , between the UNITED STATES OF AMERICA (United States),
Western Area Power Administration (Western), and CITY OF LODI (Lodi), as part of
Contact 92 -SAO -20056 (Primary Contract), pursuant to the same authorities as the
Primary Contract, and subject to all of the provisions of the Contract Primary, except as
herein amended.
2. EXPLANATORY RECITALS:
2.1 The Parties entered into the Primary Contract dated October 13, 1992,
providing, among other things, for the sale of firm power by Western to Lodi.
2.2 The Primary Contract will terminate on December 31, 2004.
Amendment 2 to Contract 92 -SAO -20056
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2.3 Western published its Final 2004 Power Marketing Plan, as defined in
Section 5 herein.
2.4 The Final 2004 Power Marketing Plan provides that Western offer certain
services to its existing customers after December 31, 2004.
2.5 Western is offering Lodi a right to purchase power from Western after
termination of the Primary Contract, pursuant to the Final 2004 Power Marketing
Plan.
2.6 Lodi would like to secure its right to purchase power from Western after
termination of the Primary Contract.
2.7 Terms and conditions for electric service after termination of the Primary
Contract will be set forth in a separate electric service contract.
3. AGREEMENT:
The Parties agree to the terms and conditions set forth herein.
4. EFFECTIVE DATE AND TERM OF CONTRACT AMENDMENT:
This Contract Amendment shall become effective upon execution by Western. This
Contract Amendment shall remain in effect concurrently with the Primary Contract,
unless it is terminated earlier by mutual consent of the Parties, Provided; That, Western
may terminate this Contract Amendment if Lodi does not meet the commitment dates
set forth in Section 6 herein.
Amendment 2 to Contract 92 -SAO -20056
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5. DEFINITION OF TERMS:
All defined terms are set forth in the Final 2004 Power Marketing Plan published in the
Federal Register on June 25, 1999, at 64 FR 34417.. The terms as ;:sed herein, are as
defined in the Final 2004 Power Marketing Plan.
6. ADDITION OF SECTION 17 TO THE PRIMARY CONTRACT:
The following provisions are hereby added to the Primary Contract as Section 17.
17. POST 2004 POWER SALES PROVISIONS:
17.1 Lodi's Riaht to Purchase: Lodi will receive an allocation of power
based on the terms and conditions specked in the Final 2004 Power
Marketing Plan. Western's offer and Lodi's right to purchase a percentage
of the Base Resource, and a Custom Product and Optional Purchase are
subject to the terms and conditions set forth in the Final 2004 Power
Marketing Plan.
17.2 Commitment Dates:
17.2.1 In order to secure a percentage of the Base Resource,
Lodi will be required to commit in writing to purchase that
percentage of the Base Resource no later than December 31,
2000.
17.2.2 Commitments to purchase a Custom Product are
contingent upon a commitment to purchase a percentage of the
Base Resource, and must be made in writing by December 31,
2002, for a period of no less than five (5) years of service,
beginning January 1, 2005.
17.2.3 Commitments to the Optional Purchase are contingent
upon a commitment to purchase a percentage of the Base
Resource, and must be made in writing by December 31, 2000.
Amendment 2 to Contract 92 -SAO -20056
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17.2.4 Western may extend the commitment date to .a later
date if Western determines it is in the best interest of Western and
the customers. The Parties may mutually agree to an earlier
commitment date.
17.3 Contract Offer: Subsequent to December 31, 2002, Western shall
offer a new contract to Lodi. This contract, the principles of which will be
developed in collaboration with all of the customers, will set forth the terms
and conditions of electric service for all products Lodi has elected to
purchase under the Final 2004 Power Marketing Plan. Lodi shall have six
(6) months to execute the contract offered by Western. If the contract is
not executed by the date agreed to by Western, Western shall withdraw its
offer, and may allocate the power to another party, Provided; That,
Western and Lodi may mutually agree, in writing, to an extension of such
six (6) month period.
7. PRIMARY CONTRACT TO REMAIN IN FULL FORCE AND EFFECT:
Except as expressly modified by this Contract Amendment, said Primary Contract shall
remain in full force and effect, and this Contract Amendment shall be subject to all
provisions of the Primary Contract.
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IN WITNESS WHEROF, the Parties have caused this Contract Amendment to be
executed the day and year first above written.
WESTERN AREA POWER ADMINISTRATION
By:
Title: Power Marketing Manager
Address: 114 Parkshore Drive
Folsom, CA 95630-4416
CITY OF LODI
By:
kttest: Title: CITY MANAGER
3y:
Address: P.O.
sox
3006
'itle: CITY CLERK
LODI,
CA
95241
.pproved as to Form:
Y:
RANDALL A. HAYS
'itle: CITY ATTORNEY
,mendment 2 to Contract 92 -SAO -20056
5
Federal Register/Vol. 64, No. 122/Friday, June 25, 1999/Notices 34417
DEPARTMENT OF ENERGY
Western Area Power Administration
2004 Power Marketing Plan
AGENCY: Western Area Power
Administration, DOE.
ACTION: Notice of the final 2004 Power
Marketing Plan.
SUMMARY: Western Area Power
Administration (Western), a federal
power marketing administration of DOE:
announces its 2004 Power Marketing
Plan (Marketing Plan) for the Sierra
Nevada Customer Service Region (Sierra
Nevada Region). On December 31.. 2004.
all of the Sierra Nevada Region's long-
term firm Cental Valley Project (CVP)
power sales contracts will expire. This
notice responds to the comments
received on the Proposed 2004 Power
Marketing Plan (Proposed Plan) and sets
forth the final Marketing Plan. The
Marketing Plan specifies the terms and
conditions under which Western will
market power from the CVP and the
Washoe Project beginning January 1.
2005. This Marketing Plan supersedes
all previous marketing plans for these
pmiwestern plans to amend existing
customers' power sales contracts to
provide them with the right to purchase
a percentage of the Sierra Nevada
Region's power resources beginning
January 1. 2005. After Western more
fully develops products and services, it
will offer new contracts for the sale of
power under the Marketing Plan.
Western will request entities who meet
the criteria defined in the Marketing
Plan, and who wish to apply for a new
allocation of power from Western, to
submit formal applications. Application
procedures will be set forth in the Call
for 2005 Resource Pool Applications in
a separate Federal Register notice.
um: The Marketing Plan will become
effective July 26. 1999.
FOR FURTHER INFORMATION CONTACT:
Power Marketing Manager. Western
Area Power Administration. Sierra
Nevada Customer Service Region. 114
Parkshore Drive. Folsom. CA 95630.
telephone (916) 353-4416.
suPPr.EMF.NTARY INFORMATION:
Authorities
The Marketing Plan for marketing
power after 2004 by the Sierra Nevada
Region is being established pursuant to
the Department of Energy Organization
Act (42 U.S.C. 7101-7352): the
Reclamation Act of lune 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.
Development of the 2004 Power
Marketing Plan
Western began developing the
Marketing Plan with a series of three
informal public information meetings.
These meetings helped Western identify
pertinent issuer and possible marketing
options, including types of products and
services, and eligibility and allocation
criteria. During that process. Western
evaluated several options for marketing
power after existing contracts expire.
Western began the Administrative
Procedure Act process with its Notice of
Proposed Plan in the Federal Register
(62 FR 8710. February 26. 1997).
Western held a public information
forum on April S. 1997, to present the
Proposed Plan and answer questions.
On April 24, 1997. Western held a
public comment forum to accept verbal
comments on the Proposed Plan. In
addition. Western accepted written
comments from the public through May
27. 1997. Western considered the
comments received in developing the
Marketing Plan.
In a separate public process. Western
explored the impact of electric utility
industry restructuring on Western's
power allocation policies. A Notice of
Inquiry for this process was published
in the federal Register (63 FR 66166.
December 1. 1998). Western held a
public comment forum on January 6.
1999, and accepted written comments
through January 15, I999. The results of
this process will be published in a
separate Federal Register notice.
Western opened an additional
comment period focused solely on the
size of project -specific resource pools
because several Native American tribes
commented an the size of these pools.
The Notice of Public Process on
Resource Pool Size was published in the
Federal Register (64 FR 4646. January
29. 1999). Western held informational
meetings on its resource pool size
proposals and the requirements for
receiving an allocation of power in
Phoenix. Arizona. on February 3. I999:
Albuquerque. New Mexico. on February
5,1999; and Folsom. California, on
February 9. 1999. Western accepted
written comments from the public
through March 1. 1999. Western also
considered the comments related to the
Sierra Nevada Reg'ion's resource pool
received during this comment period in
developing the Marketing Plan.
Western will market the Siena
Nevada Region's power resources
consistent with the Power Marketing
Initiative under the Energy Planning
and Management Program (EPAMP) (60
FR 54151. October 20. 1995). Western
will initially offer 96 percent of the
Sierra Nevada Regions power resources
to existing customers and allocate,
under a separate process. the remaining
resources using the criteria in the
Marketing Plan. Under a separate
process. Western will reduce all
customers' allocation percentages by up
to 2 percent and establish a 2015
Resource Pool. The Marketing Plan
provides a balance between existing and
new customers. including Native
American tribes. while meeting
Western's contractual obligations that
continue beyond 2004. If unexpected
circumstances cause early termination
of existing electric service contracts.
Western may market its power resources
under the Marketing Plan before January
1.2005.
Background
CVP power facilities include 11
powerplants with a maximum operating
capability of about 2.044 megawatts
(1vM, and an estimated average annual
generation of 4.6 million megawatthours
(MWh). 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
section of the Pacific Northwesst Pacific
Southwest Intertie (Pacific Intertie)), 803
circuit miles of 230 -kV transmission
line. 7 circuit miles of 115 -kV
transmission line. and 44 circuit miles
of 69 -kV and below transmission line.
Western also has part ownership in the
342 -mile California-0regon
Transmission Project. Many of
Western's erdstfng customers have no
direct access to Western's transmission
lines and receive service over
transmission lines owned by other
utilities.
The Washoe Project. Stampede
Powerplant. has a maximum operating
capability of 3.65 MW with an estimated
annual generation of 10.000 MWh.
Sierra Pacific Power Company owns and
operates the only transmission system
available for access to Stampede
Powerplant.
The following table lists estimates of
CVP power resources and adjustments.
This table is for informational purposes
only, and does not imply that the power
resources and adjustments shown will
34418 Federal Register/Vol. 64. No. 122/Friday, June 25, 1999/Notices
be the actual amounts available or
adjustments applied.
ESmwno CVP POWER RESOURCES ANo ADIUSTMENTS
Annual energy generation ..._ ._._.. »._..__.... _.. ... »_... __ ._ ............... _...._...... ._... Z.400.000-8.600.000 MWh.
MardMy --W 9eneradan _.. __ _..._ ..._.... __..._:... .......... ................. ....................... 100.000-1,100,000 MWh.
Monthly wpodity .. ...... ......_ _.. _..._...... __ ......_... ._.._ »... _.... 1,100-1.900 MW.
Annual project use ____ _.. ....___.._..._ ....._...._..........._......._........._....... _........ 870.000-1,670.000 MWh.
Morhhly project use _ ._. ...... _ ........__....._ ._........._...._.._...__.......__........_.._.......... _... __. _.. 10.000-180.000 MWh.
Monfty project use (on peak) ............ _..................... --------- ........... __........ »_.... _....... __......... ... 30-230 MW.
Monthlymaintenance .,......_..__ ........ _...... ............... _....._....._ ..........._..._ .... _...... 000 MW.
Reserves --hydro _ _ »_ ...... _.... _...........__..._......__.....___...._.._....._........._....._........._.. Minimum 5% of monthly capacity
CVP aw mi, ion and twsk madon losses from the generator bus to a 230 -kV load bus ...._...___..... 1.8% (currently).
Legal Analysis
Regulatory FlenbflftyAnalysis
The Regulatory Flexibility Act of 1980
(5 U.S.C. 601, et seq.), requires Federal
agencies to perform a regulatory
flexibility analysis if a final Wile is likely
to have a significant economic impact
on a substantial number of small entities
and there is a legal requirement to time
a general notice of proposed
rulemaking. Western has determined
that this action does not require a
regulatory flexibility analysis since it is
a rulemaking of particular applicability
involving services applicable public
proprty.
Environmental Compliance
In compliance with National
Environmental Policy Act (NEPA) (42
U.S.C. 4321. etseq), Council on
Environmental Quality NEPA
implementing regulations (40 CFR parts
1500-1508). and DOE NEPA
implementing regulations (10 CFR part
1021), Western completed an
environmental impact statement (EIS)
on EPA AP. The Record of Decision was
published in the Federal Register (60
FR 53181. October 12. 1995). Western
also completed the 2004 Power
Marketing Program EIS (2004 EIS), and
the Record of Decision was published in
the Federal Register (62 FR 22934. April
28, 1997). The Marketing Pian falls
within the range of alternatives
considered in the 2004 IIS. This NEPA
review identified and analyzed
environmental effects related to the
Marketing Plan.
Marketable CVP and Washoe Project
electrical capacity and energy is
influenced by available reservoir storage
and water releases controlled by the
U.S. Department of the Interior, Bureau
of Reclamation (Reclamation). Pursuant
to the CVP Improvement Aa of 1992
(Pub. L. 102-575. Title 34) (CVPIA).
Reclamation prepared a programmatic
EIS (PETS) addressing improvements to
fish and wildlife habitat stipulated
therein. and potential changes in CVP
operations and water allocations to meet
those obligations. Actions based on the
PEIS may result in modifications to CVP
facilities and operations that would
affect the timing and quantity of electric
power generated by the CVP. Such
changes may, in tum affect electric
power products and services to be
marketed by Western. The Marketing
Plan is designed to accommodate these
changes. Western is a cooperating
agency in Reclamation's PIIS.
Review Under the Paperwork Reduction
Act
In accordance with the Paperwork
Reduction Act of 1980 (44 U.S.C. 3501.
etseq.), Western has received approval
from the Office of Management and
Budget for the collection of customer
information in this rule. under control
number 1910-0100.
Determination Under Executive Order
12866
Western has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Small Business Regulatory Enforremenr
Fairness Act
Western has determined that this rule
Is exempt from congressional
notification requirements under 5 U.S.C.
801 because the action is a rulemaking
of particular applicability relating to
services and involves matters of
procedure.
Responses to Comments Received on
the Notice of Proposed Plan (62 FR
8710, February 26. 1997)
During the public consultation and
comment period, Western received 26
letters commenting an the Proposed
Plan. In addition. 12 customer and
interested party representatives
commented during the April 8 and
April 24. 1997, public forums. Western
reviewed and considered all comments
received by the end of the public
consultation and comment period. May
27, 1997. in preparing the Marketing
Plan.
The following is a surnmary of the
comments received during the
consultation and comment period, and
Western's responses to those comments.
Comments are grouped by subject and
paraphrased for brevity. Specific
comments are used for clarification
where necessary.
L Public Parddpadon and Process
Implementation
Comment: Commentors supported the
process Western used in developing the
Marketing Plan. One comment
expressed concern about the lack of
opportunity for public participation.
Response: Western provided
opportunities for public participation in
preparing the Marketing Plan. 2004 EIS.
and EPAMP, as described in this notice.
Comment Some commenmrs said
that since the contracts do not expire
until 2004, Western should delay the
Marketing Plan process. This delay
would allow time to resolve uncertainty
about the future of the industry. and
allow other interests time to make
arrangements to share power revenues
with environmental and clean power
goals. Other comments supported
developing the Marketing Plan on the
proposed schedule to provide customers
with lead time for planning purposes.
Response: Because electric utility
industry restructuring is already
underway, delaying decisions may
foreclose options for Western and its
customers. To be an active participant
in the newly restructured industry,
Western needs to identify and work
with its future customers to develop
specific products to meet their needs.
For many of Western's customers.
Federal hydropower is a critical
component of their resource mix. and
knowledge of CVP resource availability
is crucial to planning strategies for
Federal Register / Val. 64, No. 122 / Friday, June 25, 1999 / Notices 34419
dealing with utility restructuring. It is
important that the Marketing Plan is not
delayed because it takes time to develop
contracts and arrange for transmission
service. Western recognizes the need for
flexibility in the changing utility
industry and will offer Custom
Products. such as firming power and
ancillary services. to meet customers'
needs. The Marketing Plan will not
Impact existing arrangements
concerning funding of environmental
restoration or advancement of clean
power goals. These items are discussed
more thoroughly in our responses to
other comments.
II. £nvironmentallssues
Comment Commentors stated that
there are unresolved environmental
Issues associated with the operation of
CVP darns. and that environmental
protection mechanisms are Insufficient
or outdated. A commentor stated that if
a contract extension decision Is part of
the Marketing Plan. new environmental
protection mechanisms must be
developed. Western was urged to create
a trust funds) in which a portion of
Western's existing power revenues
would be set aside to mitigate
environmental damage associated with
operation of the Federal dams and to
support the development of energy
efficiency and renewable energy. Also.
questions were raised as to whether
Western has complied with NEPA in
developing the Mark" Plan.
Response: Western completed the
2004 EIS in accordance with NEPA, the
Council on Environmental Quality
NEPA implementing regulations. and
DOE's NEPA implementing regulations.
The 2004 IIS examined the
environmental impacts and identified
no significant impacts to the human
environment from marketing power
from the CVP and Washoe Projecr. The
Marketing Plan falls within the
parameters analyzed in the 2004 EIS.
The operation of CVP dams is dictated
by other authorized project purposes
such as flood control. navigation, water
supply, and fish and wildlife.
Environmental issues associated with
the operation of CVP dams are being
addressed by the CVPIA PSIS. including
direct and indirect impacts on all fish.
wildlife, and habitat restoration actions
and the potential renewal of existing
CVP water contracts. Western is a
cooperating agency in Reclamation's
PETS process.
CVP power customers contribute
significant revenue to the Restoration
Fund. established under the CVPIA.
which is designed to mitigate
environmental consequences of the
operation of Federal dams. Western
supports renewable energy through its
Policy for the Purchase of Non -
Hydropower Renewable Resources (61
FR 43051. August 20. 1996). In
accordance with the Energy Policy Act
of 1992. Western encourages energy
efficiency by requiting all firm power
customers to prepare and keep current
integrated resource plans.
DT. Products and Services
A. Base Resource
Comment Several cotmmentors
requested that Western reconsider its
proposal to market power on an as -
available basis. Suggestions were made
that the Base Resource be further
developed, including evaluation of
purchasing energy, especially In dry
years, to provide some minimum level
of firm power and maximize use of the
transmission assets available to
Western, including the Pacific Intertie.
Comments included requests for more
information on firm availability, pricing,
timing of commitment to purchase the
Base Resource. and reliability of the
Base Resource.
Response. CVP generation is expected
to vary hourly, daily, monthly, and
annually, based on hydrological
conditions and other constraints that
govern CVP operations: therefore.
Western cannot accurately predict
future availability. However, Western is
willing to purchase energy to maintain
some firm level of service to all
customers. The amount of firming and
the use of Western's transmission
resources will be further developed by
Western through a collaborative process
with customers prior to product
commitment by a customer. Because
Western's rates will be determined
through a separate public process.
product pricing is outside the scope of
the Marketing Pian. However, the costs
associated with the hydropower system
may be discussed during the
collaborative process.
Comment: A commentor stated that
the Base Resource concept will require
a new and much closer working
relationship with Reclamation, Federal
water users, and other stakeholders.
Response. Western will continue to
develop close working relationships
with Reclamation. Federal water users.
and other stakeholders.
Comment One commentor asked if
Western will include reserves or other
ancillary services in the Base Resource.
Response. The Base Resource may be
used in a manner the customer deems
most beneficial, within operational
constraints. Operating reserves and
other ancillary services will be
consistent with industry standards or
may be provided with the Base Resource
or the Custom Product on an as -
requested basis. Provision of ancillary
services. including reserves. will be
developed with customer input.
B. Custom Product
Comment Commentors suggested that
Western develop some "standardized"
Custom Products to allow customers to
select a more firm service. similar to
what is currently marketed. A
commentor stated that negotiating with
customers individually for firming the
Base Resource would be more difficult
less transparent. and would increase
risk. One tormentor questioned
whether the design of Custom Products
would potentially cause cost shifting
among customers.
Response: Western designed the
Marketing Plan to provide maximum
flexibility to its customers. Development
of "standardized" Custom Products for
a customer or group of customers is not
precluded by the Marketing Plan. The
Marketing Plan was designed with this
possibility in mind. Prior to product
commitments. using a collaborative
process. Western will develop Custom
Products that most closely match
customer needs. Using this collaborative
approach will help ensure that
information about Custom Product
options will be available to everyone to
minimize the risk of inequities. Also. by
considering the needs of all similarly
situated customers, due to economies of
scale, Western may obtain better prices
in the electric utility market when
making firming purchases or obtaining
other related services. Because all
customers will equitably share in the
cost of the Base Resource and each
customer will pay only for the Custom
Products which it specifically requests.
any potential for cost -shifting is
minimal.
Comment A commentor suggested
that Western needs to consider potential
ramping rates if a customer chooses to
schedule power deliveries.
Response: Under the Marketing Plan.
all customers will be required to
schedule power deliveries. Information
on ramping rates applicable to the
hydropower system will be made
available prior to beginning service.
Comment One commentor stated that
preference customers should be allowed
to help provide the products and
services needed to firm the Base
Resource for other customers wanting a
firm Custom Product.
Response: The Marketing Plan does
not preclude Western or customers from
purchasing products and services from
any supplier.
34420 Federal Register / Vol. 64, No. 122/Friday. lune 25. 1999/Notices
C. Exchange Program
Comment: Commentors supported
and recommended further development
of the concept of the Western -managed
exchange program
Response: Western will complete
development of the exchange program
through a collaborative process with
customers.
D. Energy Banking Arrangements
Comment: A wtntnentor said Western
should begin planning now for
termination of existing banking
arrangements with Pacific Gas & Electric
Company (PG&E) under Contract 14-
06-200-2948A. If the existing account is
"cashed out." the benefits should be
shared with all customers. Cormmentors
suggested that Western pursue energy
banking and finning arrangements
beyond 2004. evert though it may be
diiiicult.
Response: Since existing banking
arrangements will expire on December
31, 2004, they are outside the scope of
the Marketing Plan. Western is willing
to explore banking arrangements and
other options during further
development of the exchange program
and Custom Products.
IV. Propased Resource Percentages/
Pools
A. Allocation Methodology
Comment A commentor requested
that Western accommodate the seasonal
nature of agricultural loads.
Response: The Base Resource depends
on the generation pattern of the CVP,
which is similar to the pattern of
agricultural loads. If the Base Resource
does not accommodate the seasonal
nature of agricultural loads. Western
will work with customers to develop
Custom Products that will meet the
customers' needs to the extent possible.
Comment. One commentor stated the
Marketing Plan should not affect its
contractual rights through 2004 to
increase its contract tate of delivery
(CRD) up to 50 MW.
Response: The Marketing Plan does
not affect current contractual rights. If
necessary. Western will accommodate
these CRD increases and will effectuate
related CRD decreases as provided for in
certain existing contracts.
Comment A suggestion was made
that boar energy and capacity should be
used to determine customer resource
extensions instead of the proposed CRD
methodology. A comment further
suggested that not using energy
penalized customers with higher load
factors for maintaining good load
shapes. If rates are to be based on a split
between capacity and energy, then the
allocation should be based on capacity
and
Rete: Existing customers' current
allocations are based an capacity.
Western believes that it is equitable to
base the existing customers' resource
allocation percentages on existing
capacity commitments because. under
existing contracts. Western's capacity
obligation is fixed but the energy
obligation is not. Many customer CVP
energy purchases are based on
economics, not on their load shape or
energy entitlement Unlike the current
allocation methodology, the resources
available under the Marketing Plan are
based an generation rather than load.
Basing the right to purchase generation
output, which Is limited by the capacity
of the plants. on a CRD does not
penalize customers with high load
factors, rather it gives them no greater
consideration. Allocating the power
resources based on a rate design is not
appropriate because the rate design for
power sold under the Marketing Plan
has not been determined and may be
different from today's rate design.
B. Allocation Amounts
Comment Western was requested to
increase the 2005 Resource Pool
percentage. Another comment requested
withholding application of the Power
Marketing Initiative, particularly during
the period from 2005 through 2014
(when the Sacramento Municipal Utility
District (SMUD) settlement is in effect).
Response: Comments received did not
provide rationale for changing the
resource pool percentages. However.
Western considered many factors in
determining the magnitude of the
resource pools Those factors included:
(1) The loads of preference entities that
applied for but did not receive power
under the 1994 Power Marketing Plan:
(2) impacts of restructuring and open
transmission access; (3) the potential for
new loads. including those of Native
American tribes: and. (4) existing
customer loads with limited Federal
power compared to their needs. After
careful consideration. Western
determined that the combined resource
pools in 2005 and 2015. totaling up to
6 percent of the Base Resource, would
be equitable for potential new customers
as well as existing customers.
Withholding application of the Power
Marketing Initiative (establishment of
the resource pools) would potentially
eliminate the ability of Western to serve
new customers that may benefit from a
Federal power allocation.
Comment. Some commentors stated
that Western should maximize the
global value of its Base Resource by
m+nin+»ing both reductions and
increases in the allocadons that
Western's current customers receive.
Response: The Marketing Plan
provides for minimal increases or
reductions in the pro rata amount of the
power resources available to existing
customers. However, due to the
expiration of Contract 14-06-200-
2948A with PG&E. and the associated
firming arrangements. the Sierra Nevada
Region may not be able to market power
at the same level as in the past Under
the Marketing Plan allocation method.
each allottee will receive a percentage of
actual generation. The amount of power
associated with an allocation percentage
will vary, based on hydrological
conditions and other constraints that
govern CVP operations. The Marketing
PIan attempts to mitigate reductions In
availability or usability of the power
resources for meeting customers' loads
by offering the Custom Product, which
could include a level of firming
purchases.
Comment: A comment requested that
allocation amounts reflect a customers
CRD as opposed to actual load
Response: Western has decided that
an existing customers allocation
percentage will be based on the
customers extension CRD. Western will
adjust the existing customers
percentage if its actual load is less than
the extension CRD. This criteria was
adopted because Western does not
believe It is sound business practice to
allocate power based an a historical
CRD that has never been fully used.
Comment. Contmentots requested that
temporary allocation increases remain
with the current recipients.
Response: Contracts implementing the
temporary reallocations provide that the
original CRD be returned to the original
customer.
Comment. One commentor suggested
that the minimum load requirement for
the resource pools be 500 kW instead of
I MW.
Response: To avoid precluding
smaller entities from receiving
allocations from the resource pools.
Western has modified the Marketing
Plan to allow requests to sem loads
that are less than 1 MW, but at least 500
kW, if they can be aggregated so
Western can schedule and deliver to a
minimum load of 1 MW.
Comment: A commentor objected to
Western's approach regarding SMUD's
rights under the 1983 Settlement
Agreement in the Proposed Plan. The
commentor urged Western to reach an
accommodation with SMUD that would
provide for SMUD's resource extension
to be made on the same basis as all other
existing customers, and questioned the
logical basis for the fraction 360/1.152.
Federal Register / Vol. 64, No. 122/Friday. June 25. 1999/Notices 34421
Public participation and joinder in
regard to the SMUD settlement were
also questioned. Further. it was
recommended that if SMUD does not
voluntarily agree to a reasonable
accommodation. Western should recoup
the over -allocation during the second
10 -year period. Another commentor
supported Western's cep
Response: Contras D�9-
83WP59070 (Settlement Agreement)
between Western and SMUD, dated
April 15. 1983, provides that SMUD has
a right to purchase 360/1.152 of all
power allocated or sold by Western an
or after January 1, 2005, through
December 31. 2014. This Settlement
Agreement was reached to resolve a
lawsuit. United States ofAmedca v.
Sacramento Murridpal UttW Disticr,
Civil No. 5-75-277. United States
District Court for the Eastern District of
California. The Marketing Pian is
designed to mitigate the impacts of the
Settlement Agreement on other
customers by offering an Optional
Purchase, which is equal to the
additional amount of power allocated to
SMUD. Western will adjust SMUD's
percentage of the available resources
after 2014 to put it on the same basis as
other existing customers. The
adjustment will include the amount that
would have been contributed to the
2005 Resource Pool by SMUD In
absence of the Settlement Agreement.
Western does not agree that SMUD will
receive an over -allocation for the first 10
years under the Marketing Plan because
SMUD's percentage allocation is
specified in the Settlement Agreement.
Therefore. SMUD should not be
penalized during the second 10 years of
the Marketing Plan. The fraction 360/
1.152 referenced in the Settlement
Agreement represents SMUD's CRD of
360 MW and Western's maximum
simultaneous load level of 1.152 MW at
the time of the settlement
Allowing public participation in
litigation would severely undermine
Western's ability to protea the
Government's interest. Western is not
required to join every preference
customer or every potential preference
customer in a lawsuit in which Western
is a parry. Upon proper motion. the
court determines when and if joinder of
a person is needed far just adjudication
C. Allocations Due to Special
Circumstances
Comment•. Commentors requested that
CVP power continue to be available at
cost to long-term customers. If these
customers do not receive a power
allocation under the Marketing Plan. the
economic consequences would be
significant.
Response: Western will offer the
greater portion of the CVP resources to
existing customers. The economic
analyses done for the 2004 EIS showed
that the greatest socioeconomic benefits
would be expected to occur if Western's
existing customers continued to receive
power from Wesmm.
Comment: A few commentors stated
that Federal hydroelectric power should
be used to benefit the public. They
suggested that Western give priority to
those who meet certain additional
asteria. includingdemonstrating
environmental responsibility in
mitigating any damages associated with
Federal dams: developing and/or
integrating solar and other renewable
energy and energy ei$cienry into their
resource mix: supporting educational
Institutions-. and not requiring
supplemental purchases.
Response: Western markets power in
a manner that will encourage the most
widespread use at the lowest possible
rates consistent with sound business
principles. Within broad statutory
guidelines and operational constraints
of the CVP, 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 cannot measure the value of the
public benefits provided by an entity
when allocating its power and.
therefore, will not base an allocation on
an entity's mission. Although not
specifically addressed In the Marketing
Plan. Western supports programs for the
public good.
Western supports renewable energy
through its Policy for the Purchase of
Non -Hydropower Renewable Resources.
and encourages energy efficiency by
requiring all firm power customers to
prepare and keep current integrated
resource plans. Further. CVP power
customers contribute significant
revenue to the Restoration Fund.
established under the CVPIA, which is
designed to mitigate environmental
consequences of the operation of
Federal dams.
Comment A comment suggested that
priority be given to entities with
longstanding requests.
Response: Previous requests were
considered in determining the size of
the resource pool. Western receives
numerous requests for power and does
not believe a previous request should be
given a higher priority over requests by
qualified entities that have not applied
previously.
Comment•. A commentor suggested
Western give higher priority to entities
that can readily accept an allocation.
Response. The Marketing Plan
includes eligibility asteria requiring
that all applicants requesting power
must be ready, willing. and able to
receive and use or distribute Federal
power.
Comment: Western was requested to
extend the spirit and concept of the
National Defense Authorization (NDA)
Act. Several continents requested that
the definition of extension CRD be
modified so that NDA Act power used
for economic development is not
excluded. By doing so. entities receiving
allocations of NDA Act power for
economic development purposes would
be eligible for resource extensions under
the Marketing Plan. One comment
stated that the definition of extension
CRD violates the provisions of the NDA
Act because the legislation requires that
NDA Act power be reserved for
allocation for a 10 -year period
(commencing November 30. 1993). This
commentor contends that the legislation
provides for allocations made during
this 10 -year period to extend past
December 31. 2004. Commenter
requested that NDA Act power extend
through the completion of economic
development. Another commentor
requested that Western not extend the
provisions of the NDA Aa past
December 31. 2004.
Response: The Proposed Plan is
consistent with the NDA Act. However.
Western has reconsidered its position
regarding allocations for NDA Ad
customers. Western has decided to
extend the spirit and concepts of the
NDA Act to those existing customers
receiving NDA Act power for economic
development purposes, provided those
customers continue to meet the
eligibility requirements for an allocation
under the Marketing Plan The
Marketing Plan has been modified to
reflect this change.
V. General Criteria and Contract
Principles
Comment A commentor suggested
that, under take -or -pay provisiorm the
resale (remarketing) prohibition should
be eliminated. Other commentors stated
that. in the competitive environment.
Western will not be able to enforce the
resale prohibition, and customers will
receive an unfair advantage with the
ability to "profiteer" in regional
electriaty markets.
Response: Westem is not convinced
that the prohibition on reselling Federal
power should be eliminated due to the
take -or pay provisions. Customers' loads
are eeoected to be sufficient to use all
available Western power most of the
time. Western realizes that. at times. due
to the variability of CVP generation.
34422 Federal Register / Vol. 64. No. 122/Friday, June 25. 1999/Notices
some customers may not be able to use
their full power allocation. Therefore.
Western will establish and manage an
exchange program. Any Western power
that cannot be used on a real-time basis
must be offered to Western or to other
preference customers under this
pm
Comment A comment suggested
Western consider marketing a portion of
CVP capacity to the California Power
Exchange or other marketers.
Response: Western markets power
first to preference entities under
Reclamation laws. However, If Western
is unable to market all of its power to
preference entities, it may be sold to
others.
Comment: Many comrnentors
supported the 20 -year contract term.
citing the additional value of a long-
term contract which allows customers
who purchase Federal power greater
stability in planning for future resources
than would exist with a shorter contract
tern.
Other comments objected to a 20 -year
contract terra citing reasons for a shorter
contract tarn. One commentor
suggested contract terms of no more
than 5 years or auctioning contracts to
qualified bidders.
Response: The 20 -year contract term
provides greater resource certainty for
Western customers in a restructured
industry, and greater certainty of
revenues for project repayment by
Western. Shorter contract terms degrade
the marketability of the resource and
create an administrative burden. An EIS,
which included a significant amount of
analysis as well as a public Involvement
process, was conducted on the
provisions of EPAMP, including a 20 -
year term. The EPAMP ELS found that
longer contract terms were positive for
the environment, as customers were
more likely to invest in renewable
resources if they had a stable foundation
of Federal hydropower. Short-term
contracts could lead customers to
develop resources that are cheaper in
the short term but more
environmentally adverse. Future load
requirements are not a significant
consideration as Western is a partial
requirements provider and is generally
not responsible for meeting customer
load growth.
Contract extensions would not
preclude any Congressional or
administrative actions because contracts
or rate changes could be included as
part of a sale or restructuring package.
The Marketing Plan does not impact or
preclude future operational changes at
Federal dams because Western will
market only the available power
generation. Because Western is required
to market power at cost -based rates.
auctioning contracts Is not practical.
Power must be sold to preference
entities fust and not just to the highest
bidder. Western has included the 20 -
year contract term in the Marketing
Plan.
VI. First Preference
Comment A comment supported
using 20 -year average historical
generation to calculate the maximum
entitlement of first preference customers
(1v1EFPC), rather than a 5 -year average.
Other commentors stated using 20 -year
average historical generation to
calculate the MEFPC is inappropriate
because it does not account for
generation lost due to fishery restoration
operations and other environmental
factors, would unfairly penalize other
preference customem and would
exceed statutory requirements. A
commentor stated that first preference
customers should not be immune to the
vagaries of generation. Some comments
requested a floor MEFPC be established.
based on generation prior to CVPIA
operations. Using all historic generation
before fishery restoration was also
suggested.
Response: The New Melones Project
provisions of the Flood Control Act of
1962 (76 Stat 1173, 1191-1192) and the
Trinity River Division MM) Act (69
Stat 719) (Acts) specify that first
preference customers are entitled to up
to 25 percent of the power generated as
a result of the construction of the New .
Melones Project and the Trinity River
Division (first preference projects).
Under its discretionary authority.
Western detennines how the
entitlements are to be calculated.
Western believes the most recent 20 -
year average historical generation is
consistent with the Acts because it
accounts for generation resulting from
the first preference projects under a
variety of hydrological conditions, and
takes into consideration impacts of
changing operations such as those
contemplated under the CVPIA. The
Acts do not guarantee a minimum
amount of power to the counties of
origin; therefore. Western does not
believe a floor MEFPC is appropriate.
Comment A commenter requested
more information on the calculations
used to determine the MEFPC.
Response: The Marketing Plan
specifies the data to be used and how
the MEFPC will be calculated.
Comment. A commentor questioned
why the MEFPC will only be adjusted
if, upon recalculation. it is 10 percent
above or below the currently effective
MEFPC.
Response: To eliminate mirror or
short-term fluctuations. Western has
decided to adjust only for a 10 percent .
or mater difference in the MEFPC.
aC mrnenc Comments were received
both in favor of and in opposition to the
first preference customers' full
requirements option at the Base
Resource rate. without the take -or -pay
provision. One commentor stated that
all customers should be treated
economically the same.
Response: The full requirements
option will be supplied from the same
power resources as the Base Resource:
therefore, it is reasonable to apply the
Base Resource rate. It is not appropriate
to apply the take -or -pay provision to the
full requirements option because the
first preference customers will not have
a fixed percentage amount under this
option. Western will continue to offer
the full requirements option to the first
preference customers.
Comment: A commentor said he
assumed that the load factor referred to
in the full requirements option is
intended to apply only to those first
preference customers who cannot
measure their demand.
Response: In the future it may be
necessary to determine a maximum
capacity from the MEFPC. This
calculation will require use of a load
factor for each first preference customer.
However. it will not be necessary to
provide a load factor in the contracts,
and the Marketing Plan now reflects this
clarification.
Comment: Some commentors who
opposed the full requirements option
stated that it Is beyond Western's
statutory requirements and is unfair to
the other customers. It was suggested
that a daily entitlement be established
based an actual generation. First
preference customers should be
provided with the Base Resource and
should pay the cost of creating a Custom
Product in the same manner as all other
customers.
Response. The Acts specify that first
preference customers are entitled to
receive up to 25 percent of the
additional power generated as a result of
construction of the first preference
projects. Western has discretion in how
it fulfills the requirements of the Acts.
When Congress authorized construction
of the first preference projects. it
balanced the concerns of the counties of
origin and the benefits the first
preference projects would have to the
entire CVP. Western believes that
Congress attempted to provide a fair
remedy to all parties involved. It is
within the spirit of the Acts to make the
maximum amount of the MEFPC
available to the fust preference
Federal Register / Vol. 64. No. 122/Friday, Juane 25. 1999/Notices 34423
customers to the extent It can be used
to meet their loads. Power deliveries
under this option would be nearly
identical to what they are today.
Wester believes this arrangement will
have minimal impact on the other
customers: therefore. we will continue
to offer the full requirements option.
Comment Comments requested that
first preference customers who choose
the percentage option be allowed to
participate in the exchange program.
using some or all of their MEFPC.
Response: Under the percentage
option, first preference customers would
be allowed to participate in the
exchange program to the same extent as
the other customers.
Comment A commentor suggested
that the Marketing Pian should provide
for first preference customers to receive
25 percent of the energy generated from
the TRD, exactly as the legislation
provides. at the cost to produce that
energy.
Western was requested to provide
additional options that would allow first
preference customers to schedule up to
25 percent of the energy produced as a
result of the first preference projects. at
prices that reflect the cost to produce
first preference project energy. Options
should provide for first preference
customers to call upon historic
generation that they did not use during
times when 25 percent of first
preference project energy is less than
their load. If first preference customers
are not allowed to call upon historic
generation that they did not use.
Western should allow them to trade or
bank some of the 25 percent of what is
produced by the fust preference projects
in the future.
Other comments recommended that
the Marketing Plan should reflect past
legal resolution of issues regarding use
and pricing of first preference power.
Response: The Acts do not provide for
Western to furnish more power than can
actually be used by the first preference
customers within the counties of origin.
First preference customers are not
entitled to historic generation they were
unable to use. Also, the Acts do not
provide for energy banking
at. With respect to providing
the energy at the cost to generate power
at the first preference projects. both Acts
state.
' ' ' contracts for the sale and delivery of
the additional electric energy available from
the Central Valley Project power system as y
result of the construction of the plants • •
In Trinity County Public Utilities Districr
vs. Harrington (781 F.2d 163 (9th Cir.
1986)), the court held that since the first
preference projects are operationally
and financially integrated with the CVP.
the first preference customers should
pay rates based on the operating costs of
the CVP system.
Comment: It was requested that a
menu of services be offered to the first
preference customers, coupled with
certain first preference rights. like the
sale of energy at first preference project
cost
Response: First preference customers
are offered two options—the full
requirements option and the percentage
option. Under the percentage option,
first preference customers may choose
to customize their allocation with the
Custom Product and participate in the
exchange program. See Western's
.response above concerning rates for first
preference customs.
Comment One commentor stated that
the percentage option could not be used
by first preference customers to gain
greater benefits than would be available
under the full requirements option. even
though they are entitled to greater
benefits. The commentor suggested that,
other than a few differences, the
percentage option makes first preference
customers almost equal to other
customers.
Response: The principal benefit
granted to first preference customers
under the Acts is the first right to
purchase a portion of the additional
generation made available to the CVP as
a result of the construction of the first
preference projects. for use in the
counties of origin. Under the percentage
option, the first preference customers'
allocations will be determined similarly
to the other customers. However. first
preference customers' allocation
percentages will be based on their actual
loads. not on a CRD. First preference
customers will not be subject to
adjustments in their allocation
percentages for the resource pools.
Additionally. fust preference customers
will have the opportunity to adjust their
allocation percentages. with a 7 -month
notice to and approval by Western, up
to their share of the M UPC. Western
believes that both the percentage option
and the full requirements option
provide the benefits required under the
Acts.
Comment: One commentor stated that
12 months of load data is not reflective
of actual usage. and requested that
Western modify the factors used in the
calculation to determine a first
preference customers percentage
Response: Western has modified the
Marketing Plan to provide for the
maximum demand during the previous
4 years to be used in determining an
allocation percentage under the
percentage option.
Comment: A few commentors stated
that Western is required under both
Acts to provide transmission services to
first preference customers Additionally.
Western was requested to commit to
provide =utnisdon service with the
basic service at the basic rate to the first
preference customers. One commentor
suggested that first preference customers
should be exempt from Section V.G.
Response: The TRD Aa authorizes
Western to provide electric transmission
facilities as may be necessary to furnish
energy to Trinity County. Western owns
transmission facilities in Trinity
County. Should additional facilities be
required. appropriations or customer
advancement of funds would be
necessary before such facilities could be
constructed. There is no similar clause
in the New Melones Project provisions
of the Flood Control Act of 1962 with
respect to Calaveras and Tuolumne
Counties. Western will assist in
providing transmission service to the
first preference customers. Although
Western Is willing to assist all
customers are ultimately responsible to
provide for the delivery of Federal
power to their loads. Accordingly,
Section V.G. requiring customers to
obtain their own third -parry
transmission service. Is applicable to all
customers.
Western has voluntarily filed an Open
Access Tariff consistent with FERC
Order No. 888. Transmission costs will
be identified separately from power
costs, and all trarssrnission users will
bear an equitable share of those costs.
Comment: Comments were received
both in favor of and in opposition to the
provisions of the Proposed Plan relating
to the first preference customers. Those
in favor of the provisions stated they are
appropriate and encouraging. Those in
opposition stated the provisions exceed
Western's requirements under the Acts
and provide the fust preference
customers with better products than
those offered to the other customers.
Some first preference customers
indicated dissatisfaction with the
benefits they are currently receiving
under their respective Acts in
comparison to the sacrifices they made
to allow construction of the first
preference projects.
Response. To compensate the
counties of origin for their sacrifices.
both Acts require Western to provide
the counties of origin with the amount
of energy they can use. up to 25 percent
of the additional energy generated by
the CVP as a result of the construction
of the respective first preference
projects. Under its discretionary
aurhorirv. Western determines the
manner in which this energy is made
34424 Federal Register / Vol. 64, No. 122/Friday, June 25. 1999/Notices
available to Stat preference customers.
Western believes it is appropriate to
continue to provide these customers
with the opportunity to choose between
the two options in the Marketing Plan.
This will allow those customers to
decide how to make the best use of the
benefits they are entitled to receive.
Whether either of the options results in
a "better" product than that received by
other customers would depend on many
factors outside of Western's controL
such as future energy prices. and is
secondary to meeting the spirit and
intent of the Acts.
Comment: A comment requested that
Western provide a summary supporting
the Marketing Plan's compliance with
the TRD Act.
Response: Section 4 of the TRD Act of
1955 states.
Contracts for the sale and delivery of the
additional electric energy available from the
Central valley Project power system as a
result of the construction of the plants herein
authorized and their integration with that
system shall be made in accordance with
preferences expressed in the Federal
reclamation laws: Provided That a first
preference. to the extent of 25 per centum of
such additional energy, shall be given. under
Reclamation law, to preference customers in
Trinity County. California, for use in that .
county. who are ready. able. and willing
within 12 months after notice of availability
by the Secretary. to enter into contracts for
the energy: Pmwded further. That Trinity
County prefeence customers may exercise
their option on the same date in each
successive fifth year providing written notice
of their intention to use the energy is given
to the Secretary riot less than 18 months prior
to said date:
In accordance with the TRD Act.
Section VI of the Marketing Plan
provides that Western will calculate and
make available to preference customers/
entities in Trinity County, to the extent
they can use it within that county. 25
percent of the additional energy made
available to the CVP as a result of the
construction of the TRD. These first
preference customers have the right to
this power before it is made available to
other preference customers. Both
options provide that the power be made
available to these first preference
customers to meet their needs, and the
amount of power can be increased until
it reaches the limit set forth in the TRD
Act. A first preference entity may
exercise its rights 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
pro'ect located in its county.
mmenc A commemor supported
dividing the MEFPC from the New
Melones Project between Calaveras and
Tuolumne Counties. That commentor
requested a provision be added to the
Marketing Plan. allowing the counties of
Calaveras and Tuolumne to combine
their allocations for the purpose of joint
load management.
Response Western is willing to
consider combining allocations for the
New Melones' counties of origin if it is
requested by the affected parties. Such
an arrangement is an operational
procedure and does not need to be
specified in the Marketing Plan.
Comment: A comment suggested that
Western should share the revenue
received from sales of unused first
preference power with the first
preference customers.
Response: Under applicable
legislation. there is no basis to share
revenues with the first preference
customers.
Comment: Some first preference
customers stated that they are assuming
that they will not be charged for
scheduling services. Western was
requested to clarify the phrase
.scheduling arrangements" (Proposed
Plan Section V.Q.
Response: The phrase "scheduling
arrangement" as used In Section V.0 of
the Proposed Plan was included because
Western anticipates that power
deliveries will no longer be determined
after the fact. which is allowed under
Contract 14-06-200-2948A. Schedules
will be agreed upon prior to delivery.
Scheduling is required under both
options for the first preference
customers. as well as for all other
customers. Under the restructured
electric utility industry in California.
Western or the customer's scheduling.
agent will be required to provide
schedules for all power deliveries
within the California Independent
System Operator (ISO) control area. The
first preference customers may perform
their own scheduling or contract with
Western or a third party to perform
scheduling services. If Western is
requested to perform scheduling
services. the cost will be borne by each
customer requesting such service. This
cost will be identified separately from
the Base Resource rate.
Comment: Commentors requested that
Western clarify the phrase "power
requirements" (Proposed Plan Section
VI.D.1).
Response: The reference to "power
requirements" as used in Section VI.D.1
of the Proposed Plan means the capacity
and energy necessary to serve a first
preference customer's load from that
first preference customer's share of the
MEFPC. The statement concerning
power requirements has been clwTied
in the Marketing Plan.
Comment: A cornmentor requested
that Western clarify the statement in
Section VLB of the Proposed Plan that
Western may purchase power on behalf
of the first preference customers to
compensate for any power loss due to
recalculation of the MEFPC.
Response: This provision has been
clarified in the Marketing Plan.
Comment: Continents were received
stating that priority should be given to
first preference entities that are wholly
located within the counties of origin.
Also, if a contract extension is granted
to a first preference customer or a new
contract is executed with a first
preference entity that is not entirely
located within a county of origin. it
should be for power withdrawable to
serve first preference customers/entities
that are wholly located within that
county of origin. A comment also
requested the definition of a first
preference customer/entity include the
following language.
one which serves and provides a direct and
measurable benefit to the residents of the
counties of Trinity. Calaveras. and
Tuolumne.
Response: The definition of a first
preference customer/entity must be
consistent with the Acts and
Reclamation law. Both Acts provide for
electric service to be made available to
entities who qualify for preference
under Reclamation law and are located
in their respective counties. Therefore.
entities located in Tuolumne. Calaveras.
or Trinity Counties who are preference
entities qualify for first preference
rights. The Marketing Plan is consistent
with the Acts.
Comment: A commentor said he
assumed that Section VLE of the
Proposed Plan is applicable only to new
first preference customers.
Response: Section VLE of the
Proposed Plan, regarding applications
for first preference power, applies only
to first preference entities. First
preference entities are entities who are
qualified to use, but are not currently
using. preference power within a county
of origin. They are qualified to be first
preference customers but are not yet
customers.
Comment: One commentor suggested
that first preference customers had been
inappropriately exempted from Section
V.B. allocation percentage adjustment
clause, as referenced in Section VI.j of
the Proposed Plan.
Response: Western has determined
that Section V.B will be applicable to
the first preference customers. and the
Marketing Plan has been so modified.
Federal Register / Vol. 64. No. 122/Friday. June 25. 1999 /Notices 34425
VH. Tianstrrissfon
CommenC One commentor stated that
Western's oarutttission obligations
under separate transmission contracts
must be honored. Another commentor
asked how Western plans to deal with
the DOE Labs' 100 MW entitlement an
the California -Oregon Transmission
Project and their capacity entitlement
on the Tracy Tie Litre.
Response: The Marketing Plan does
not modify Western's existing
contractual transmission rights or
obligations. including DOE's
entitlements.
Comment: A commentor expressed
concern that the unbundling of
transmission service from power
services would have an adverse impact
on Western's customers. and Western
should not require customers to go
through a separate process to obtain
transmission. It was suggested that
Western snake a "delivered" product
available, or otherwise use transmission
assets to firm the Base Resource.
particularly in dry years. It was further
suggested that if customers use the
uansmission systems of others for
delivery of CVP power. they should still
be responsible for a portion of Western's
transmission system costs.
Response: Western is not a FERC
jurisdictional utility, but has agreed to
comply with the spirit and intent of
FERC Order No. 888. to the extent it
does not conflict with Western's
legislative mandates. If It Is feasible in
the restructured electric utility industry.
Western is willing to evaluate bundled
services. including use of its
transmission access to the Northwest.
during further development of the Base
Resource. Optional Purchase. and
Custom Products. All customers who
use Western's transmission system will
share cost responsibility for the
transmission system.
Comment One commentor stated that
Western's current Pacific lntertie
transmission service level does not fully
reflect Western's ownership of its
portion of the Pacific Intertie.
Response. Western's current level of
Pacific Intertle umnsmission is outside
the scope of the Marketing Plan.
Comment One commentor stated that
Western needs to consider its products'
impacts on other customers. particularly
Western's direct -connect customers who
rely on Western's transmission system.
Response: Western considered the
potential impacts of its products on all
customers. including direct -connect
customers. It is Westerns intent to offer
products which are useful and
beneficial to all customers.
Comment One commentor objected to
Westem's proposal to assess
transmission losses to customers that
are directly connected to western's
transmission system.
Response: Under the Marketing Plan.
power will be available as a system sale.
not from specific points of generation It
is necessary to account for the power
that is lost between generation and load.
Therefore, all power deliveries using the
CVP transmission system will be subject
to loss assessments.
Comment: One commentor requested
Western assume a position of advocacy
on its customers' behalf in regard to
access and pricing of third -parry
transmission. Western was urged to
reserve sufficient capacity on its
transmission system to accommodate its
customers' requirements for wheeling of
both CVP and purchased firming power.
Westem was encouraged to explore
ways in which its customers will have
a superior entitlement to schedule
capacity on Westeri s transmission
syste= while avoiding the problem of
double -billing for transactions utilizing
both the Federal and tion -Federal
systems.
Response: Access to and pricing of
third -party transmission Is outside the
scope of the Marketing Plan. Western
will provide transmission services as
appropriate In conjunction with its
power sales in a manner consistent with
FERC Orders and legislated mandates.
Use of Western's transmission resources
will be determined as the products and
services to be provided by Western are
further developed.
VIII. Pricing and Rates
Comment Commentors expressed
concerns that. in order to commit to a
longterm Marketing Plan. a clear idea of
prices and availability of power is
needed. They stated that the bulk power
market is often trading below Western's
current price range. and uncertainties
such as the Restoration Fund make it
even more unattractive to choose
Western.
Response: Western will sell the Base
Resource at a cost -based rate, and the
Custom Product at a pass-through cost
The ratemaking process is separate from
the Marketing Plan: however, as in all
Administrative Procedure Act
processes. public participation will be
encouraged. Costs and availability will
be more clearly identified by the time
commitments are required for the Base
Resource.
Western has no control over
Restoration Fund costs: however.
Western is striving to minimize Western
components of power costs and
customize products in an attempt to
provide the best possible service at the
lowest possible rates consistent with
sound business principles. Western
expects its prices to be at or below the
bulk market by the time the Marketing
Plan goes into effect.
Comment Although the take -w -pay
method was commented upon
favorably. some commentors stated take -
or -pay contracts require details on
prices and products. and are unrealistic
unless they are for short terms. A -
comment was received favoring cost -of -
service ratemaking with a take -or -pay
provision for "must -nm power."
Response. The take -or --pay approach
Is expected to provide adequate
revenues to ensure project repayment
The Base Resource will be sold at a cost -
based rate that will be developed In a
public process in which customers and
interested parties may participate. Other
products will be sold on;i pass -through -
cost basis. By the time product
commitments are requited, individual
customer need and pricing and
availability information will be more
clearly defined.
Comment• A commentor requested
that western negotiate for finning
resources on behalf of its entire
customer base so that certain customers
will not be competing In the bulk power
market against Western.
Response: The Marketing Plan reflects
the option for Western to negotiate for
firming as part of the Custom Product .
on behalf of its entire customer base, a
group of customem or individual
customers, if requested by those
customers.
Comment Western should postpone a
derision on Washoe Project cost
recovery until more definitive
information can be provided.
Response: Western believes all
necessary Information concerning the
marketing of Washoe Project power is
available and has been considered.
Western sees no benefit in delaying the
decision to market Washoe Project
powerwith the CVP resource.
ZX IndusayRestructwing
Comment A commentor stated that
restructuring has changed the rules of
the game to the point that Western's
proposals are inconsistent with public
interests. Another commenter
encouraged Western to retain flexibility
to accommodate changes in the
industry.
Response. Western believes it is in the
public interest to provide some resource
certainty to its customers and to protect
the Federal investment in project
facilities. The Marketing Plan is
designed to be flexible enough to
respond to changes in CVP operations
and the industry, and to provide the
34426 Federal Register / Vol. 64, No. 122/Friday, June 25, 1999/Notices
greatest value to customers and the
Federal Government.
Comment A commentor asked if
joining the California ISO will pose arty
problems for Western.
Response: Whether Western will join
the California ISO is a separate decision
from development of the Marketing
Plan, The Marketing Plan does not
preclude Western's participation in the
California ISO.
Comment A commentor suggested
that Western should recognize the new
competitive market and help its
preference customers wherever possible
with competition transition charge
problems.
Response: Westem designed the
Marketing Plan to be flexible to respond
to changes in the industry and provide
the greatest value to its customers.
Products and services available under
the lvlarketing Plan can be customized to
meet individual customer's needs in the
new competitive market.
Competition transition charges are
outside the scope of the Marketing Plan.
Responses to Comments Received on
the Notice of Public Process on
Resource Pool Size (64 FR 4646,
January 29, 1999)
During the public consultation and
comment period. Western received five
letters commenting on the Sierra
Nevada Region's resource pool size. No
comments were received during the
February 9, 1999, public meeting in
Folsom. California. Western reviewed
and considered all comments received
by the end of the public consultation
and comment period, March 1. 1999. in
preparation of the Marketing Pian.
The following is a summary of the
comments received during the
consultation and comment period. and
Western's responses to those comments.
Comment: Some comments stated that
the proposed sizes of the resource pools
were adequate to meet the needs of new
customets. including the fair share
needs of eligible Native American tribes.
Response. Western considered the
needs of new customers, including
Native American tribes, when
determining the sizes of the resource
pools during development of the
Marketing Plan. Western concurs with
this comment.
Comment: A commentor stated that a
larger allocation percentage, such as 30
percent, would be necessary for certain
Native American tribes in Southern
California. That commentor also
suggested that an allocation be set aside
for them and dedicated to tribal
economic development.
Response: Southern California is
outside the primary marketing area of
the Sierra Nevada Region. The Desert
Southwest Customer Service Region of
Western serves Southern California and
will develop its marketing program
prior to the expiration of its current
electric service contracts.
Comment As Western's Marketing
Plan becomes more definitive, it would
be beneficial for PG&E to review the
Marketing Plan in advance to assure
consistency with any possible post -
Contract 14-06-200-2948A (Integration
contract with PG&E) contractual
relationship.
Response: Under the Administrative
Procedure Act. Western cannot disatss
the final Marketing Plan with any
entities prior to publication.
Comment In determining the level of
benefits to Native Americans. Western
should take into account the benefits
currently received through rural electric
cooperatives serving the reservations.
Western should attempt to fairly
distribute the benefits of low-cost
Federal hydropower. ensuring equity
among all eligible tribes and existing
customers.
Response: The allocation and
eligibility criteria in the Marketing Plan
were developed to ensure the benefits of
Federal power were equitably
distributed among new customers.
including eligible Native American
tribes, and existing customers.
Comment Power could be provided
to a utility to serve a tribe: however. the
tribe would actually hold the allocation.
By way of a bill crediting system, the
Federal power benefits could be passed
on to the tribe through a credit on its
utility bill.
Response: Western intends to allocate
power directly to any eligible Native
American tribes that apply for power.
The Siena Nevada Region will work
with tribes to receive power under the
California direct access rules or other
applicable arrangements. which may
include bill crediting.
Comment. If a Native American tribe
establishes a utility and seeks an
allocation from the resource pool. that
tribal utility should be treated as a
utility applicant and subject to the same
qualifications and provisions to which
all Federal power customers are subject.
Response: Native American tribal
utility applicants will be treated
similarly to other utility applicants.
Summary of Revisions to the Proposed
Plan
Western revised the Marketing Plan as
a result of the comments received
during the comment period and public
forums. Additionally, some changes
have been made to more dearly define
the intent, but do not change the
original proposal. The major revisions
are summarized as follows.
The definitions of administrator.
curtailable power, diversity powerload
factor. long-term. NDA Act power,
peakingpower marketing initiative,
unbundled, and withdrawable have
been deleted. These definitions were
deleted because they are not necessary
terms in the final Marketing Plan The
definition of customer was deleted and
will be used as a generic terns to refer
to new allottees and/or existing
customers. A definition for the Optional
Purchase was added to assist in
understanding that product. These
modifications appear in Section I, and
are used throughout the Marketing Plan.
In the formulas in Section IVAl and
IV.A.2, Western will base an existing
customer's allocation percentage on its
extension CRD. as of December 31, 2003,
rather than December 31.2001. Western
will adjust an existing customer's
percentage on December 31. 2003, if its
maximum monthly peak load for the
previous 3 years is Iess than its
extension CRD, rather than basing the
existing customer's extension CRD on
104 percent of its load during the
previous 4 years. This modification also
apears in Appendix A.
9: ion �was modified to
include NDA Act power used for
economic development. This
modification appears in Section I and
Appendix
Western has decided not to market
unused fust preference power on a
withdrawable basis. Unused first
preference power will be included as
part of the Base Resource and available
to all other customers. Sections I and III
were modified. Section VX of the
Proposed Plan has been deleted.
The commitment date has been
changed to December 31. 2000. for the
Base Resource and Optional Purchase.
and to December 31, 2002, for the
Custom Product. Additionally, Western
may extend the commitment dates for
the Base Resource. Optional Purchase.
and Custom Product if Western
determines it is in the best interest of
Western and the customers. This
modification appears in Sections III and
V.
Unused power resources may be
marketed outside the primary marketing
area This modification appears in
Section M.
Existing customers must commit to
the Optional Purchase for a 10•year
period. from January 1. 2005. through
December 31. 2014. rather than an
annual or greater period. This
modification appears in Section M.
The Call for Resource Pool
Applications will be published in a
Federal Register / Vol. 64. No. 122/Friday, June 25, 1999/Notices 34427
separate Federal Register notice. This
modification appears in Section
TV.B.2.e.
Existing customers may apply for a
resource pool allocation If their .
extension CRD is not more than 15
percent of their peak load in the
calendar year prior to the Call for
Applications, rather than calendar year
1996. This modification appears in
Section TV.B.2.g.
Requests to serve new loads that are
less than 1 MW, but at least 500 kW.
will be allowed If they can be aggregated
so Western can schedule and deliver to
a minimum load of 1 MW. This
modification appears in Section
IV.B.2.h
Western will base a resource pool
allocation on an applicant's peak
demand during the calendar year prior
to publication of the Call for
Applications. The amount used to
determine a resource pool allottee's
allocation percentage will not be
rounded up to the nearest 100 kW. This
modification appears in Section
TV.B.3.b.
Eligible Native American entities will
receive greater consideration for an
allocation of up to 65 percent of their
peak load in the calendar year prior to
the Call for Applications. This
modification appears in Section
IV.B.3.e. .
First preference customers will be
subject to Section V.B. which clarifies
that allocation percentages provided for
in the Marketing Plan and the electric
service contracts shall be subject to
adjustment. This modification appears
in Sections V.B and VLK
Contracts will include a clause
specifying criteria that customers must
meet on an ongoing basis to be eligible
to continue receiving electric service
fivm Wester. This modification
appears in Section V.F.
Although Western may assist. each
customer will be responsible for
obtaining its own delivery arrangements
to its load. This modification appears in
Section V.G.
Western may reduce or rescind a
customer's allocation percentage. upon
90 -days notice. if Western determines
that the customer is not using the power
to serve its own loads or the allocation
amount is consistently greater than the
customer's maximum peak load. This
modification appears in Section VX
Contracts may include a clause
providing for alternative funding
arrangemenm including net billing, bill
crediting, reimbursable financing. and
advance payment. This modification
appears in Section V.N.
The initial recalculation of the
MEFPC pertaining to this Marketing
Plan will be completed by June 1, 2004.
This modification appears in Section
VLA.
The commitment date for first
preference customers to commit to the
percentage option has been changed to
December 31, 2002. This modification
appears in Section VLD.
Under the full requirements option. 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 maxlrmun
amount of power available to each first
preference customer from the MEFPC.
This modification appears in Section
VI.D.i.
For first preference customers,
Western will use the maximum demand
during the previous 4 years. rather than
the last 12 months. in determining an
allocation percentage under the
percentage option. This modification
appears in Section VI.D.2.
A first preference customer's request
for an increase in its allocation
percentage under the percentage option
must be accompanied by justl$cation
for the increase. This modification
appears in Section VLD.2.c.
First preference customers will be
subject to Section V.L. which states that
any power not under contract may be
allocated at any time, at Western's sole
discretion. or sold as deemed
appropriate by Western. This
modification appears in Section VLK
Western will provide bundled or
unbundled transmission services with
its power sales. consistent with FERC
Orders, legislated mandates. or
California ISD Agreements. This
modification appears in Section VII.
Appendix A was updated to reflect
new customers and changes in CRD.
2004 Power Marketing Plan
This Marketing Plan addresses: (1)
The power to be marketed after
December 31. 2004. which is the
termination date for all Central Valley
Project (CVP) electric service contracts;
(2) the general terms and conditions
under which the power will be
marketed: (3) the resources available to.
existing customers; and (4) the criteria
to determine who will receive
allocations from the resource pools.
The Western Area Power
Administration (Western) will continue
a collaborative process in implementing
the terms set forth in this Marketing
Plan.
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 passible
rates consistent with sound business
principles. All products and services
provided under this Marketing Plan will
be subject to operational requirements
and constraints of the CVP and Washoe
Project. transmission availability,
purchase power limitations. and Federal
authorities.
I. Acronyms and Definitions
As used herein, the following
acronyms and terms. whether singular
or plural. shall have the following
m AAHa don: An offer from Western to
sell Federal power for a certain period
of time. that will convert to aright to
purchase after execution of a contract
Allocation Criteria Conditions
applied to all applicants who receive an
allocation.
Allottee: An entity receiving an
allocation percentage under this
Marketing Plan.
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 described in Federal
Energy Regulatory Commission (FERC)
Order No. 888 (Docket Nos. RM9548-
000 and RM94-7-001), issued April 24.
1996.
Base Resource: CVP and Washoe
Project power output and existing
power purchase contracts extending
beyond 2004, determined by Western to
be available for marketing, after meeting
the requirements of project use and fust
preference customers. and any
adjustments for maintenance, reserves,
transformation losses. and certain
ancillary services.
Capacity. The electrical capability of
a generator, transformer, transmission
circuit or other equipment.
Cental VaIIey Project (CVP): A
multipurpose Federal water
development project extending from the
Cascade Range in northern California to
the plains along the Kern River, south
of the City of Bakersfield.
Contract Principles Provisions of the
electric service contracts. including
Western's General Power Contract
Provisions.
Contract Rate ofDelivery (CRD): The
maximum amount of capacity made
available to a customer for a period
specified under a contract.
Custom Producr A combination of
products and services, excluding
34428 Federal Register / Vol. 64. No. 122/Friday, June 25. 1999 /Notices
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.
Mfgibflityt rfteria Condition that
must be met to qualify for an allocation.
Energy+: Measured in tams of the
work it is capable of doing over a period
of time: electric energy is usually
measured in kilowatthours or
megawatthours.
Erlsting Customer. A preference
customer with a contract to purchase
firm power, offered under a previous
allocation process or marketing plan,
that extends through December 31,
2004.
Extension CRD: An existing
customers CRD exclusive of diversity
and curtailable power. and peaking/
excess capacity, as it may be adjusted in
accordance with this Market n Plan.
Firm: A type of product and�or service
that is available to a customer at the
times it is required.
First Preference CustomerlEntity. 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
which are included in Western's electric
service contracts.
Integrated Resource Plan (IRP): A
process and hannework 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.
MarkedngPlan. Western's final 2004
Power Marketing Plan for the Sierra
Nevada Region.
Megawatt (MR9. A unit measuring the
rate of production of electricity, one
megawatt equals one million watts.
National Defense Authorization Act
(IVDA Aa): Section 2929 of the National
Defense Authorization Aux. Pub. L. 103-
160, 107 Stat 1547. 1935 (1993). which
provides that for a 10 -year period
(starting in 1993). the CVP electric
power allocations to military
installations in the State of California.
which have been dosed 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.
Optional Purchase. An additional
increment of power purchased by the
Sierra Nevada Region at the request of
an eligible existing customer on a pass-
through -cost basis. Such power will be
made available as a replacement for the
Base Resource that is unavailable to that
existing customer due to the Sacramento
Municipal Utility District's (SMUD)
percentage right of 360/1.152 of the Base
Resource provided for under the SMUD
Settlement Agreement. The Optional
Purchase wfll terminate on December
31.2014.
Power. Capacity and energy.
Preference: The requirements of
Reclamation law which provide that
preference in the sale of Federal power
be given to certain entities, such as
municipalities and other public
corporations or agencies and also to
cooperatives and other nonprofit
organizations financed in whole or in
part by loans made pursuant to the
Rural Electrification Act of 1936
(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 Pm ect facilities.
Reclamation law: Refers to a series of
Federal laws with a lineage dating back
to the tum of the century. Viewed as a
whole, those laws create the framework
under which Western markets power.
Sierra Nevada Region: The Sierra
Nevada Customer Service Region of the
Western Area Power Administration.
Washoe Project A Federal water
project located in the Lahontan Basin in
west -central Nevada and east -central
California.
Westem: 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. 7101-7352).
11. Base Resource
The Base Resource. as defined in
Section I. will include CVP and Washoe
Project generation supported by certain
power purchases. CVP generation
(energy and capacity) will vary hourly,
daily, monthly, and annually, because it
is subject to hydrological conditions and
other constraints that may govern CVP
operations. CVP generation must be
adjusted for project use, maintenance,
reserves, transformation lasses. and
certain ancillary services before CVP
generation is available for marketing.
The power resources will be further
adjusted for transmission losses to the
point of delivery. The power resources
may also be adjusted for first preference
customers, when first preference
customers' needs increase, up to the
maximum entitlement of first preference
customers.
Western will market pan of the 3.65
MW and estimated annual energy
generation of 10,000 MWh available
from the Washoe Project as part of the
Base Resource. The U.S. Department of
the Interior, Fish and Wildlife Service
Lahontan National Fish Hatchery and
Marble Bluff Fish Facility are project
use loads of the Washoe Project and
have first call on those power resources.
The generation available after serving
the Fish and Wildlife Service needs will
be marketed with the CVP power
resources. The Washoe Project is subject
to the same variability and constraints
as the CVP.
Western will also include any power
available from existing power purchase
contracts with terms extending beyond
2004 in the Base Resource. Currently,
Western has a contract with Enron
Power Marketing, Inc., that has a final
termination date of December 31. 2014.
The adjustments and variables
discussed 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 obligations to first
preference customers, 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 the amount of firming
provided by Western and a customer's
ability to integrate this power resource
into its power resource mix.
III. Products and Services
Western will market its Base Resource
alone or in combination with the
Optional Purchase and/or Custom
Product, which could include
purchasing some level of firming power
on behalf of all cu mem 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 this Marketing Plan. Western
will determine. in a collaborative
process with the customers, the best use
of Western's power and transmission
Federal Register / VoL 64, No. 122/Friday, June 25. 1999/Notices 34429
resources to provide the Base Resource.
Optional Purchase, and Custom
Products.
Each allottee will be allocated a
percentage of the Base Resource. All
customers will be required to commit to
the Base Resource no later than
December 31, 2000.
Upon request. Western will provide a
qualified existing customer with the
Optional Purchase. Commitments to the
Optional Purchase must be made by
December 31, 2000. Existing customers
requesting the Optional Purchase must
commit to the Optional Purchase at the
time a commitment is made for the Base
Resource. through December 31. 2014.
Upon request. Western may develop a
Custom Product for any customer. A
Custom Product may include ancillary
services. reserves. etc.. or may include
Western purchasing additional
resources. including firming power, to
provide some of these services.
Commitments to purchase a Custom
Product must be made by December 31.
2002, for a period of no less than 5 years
of service. beginning January 1. 2005.
Thereafter. the Custom Product will be
offered for periods as agreed to by
Western.
Western may extend the commitment
dates for the Base Resource, Optional
Purchase, and Custom Product if
Western determines it is in the best
interest of Western and the customers.
Any unused power resources may be
marketed under terns and conditions
and for periods of time as determined by
Western. and may be marketed outside
the prinary marketing area.
Wes will establish and manage an
exchange program to allow all
customers to fully and efficiently use
their power allocations. The exchange
program will be further developed by
Western through a collaborative process
with all customers. Specific criteria for
the exchange program will be included
in electric service contracts. Arry power
under contract that cannot be used on
a real-time basis, due to a customer's
load profile, must be offered under this
exchange program to Western or other
preference customers.
IV. Resource Available to Existing
Customers and Resource Pool
Allocations
Western will allocate a portion of the
Base Resource to existing customers and
set aside a portion for new allocations.
Effective January 1. 2015. Western will
reduce all customers' allocation
percentages by up to -2 percent to
establish a 2015 Resource Pool. Initially.
an existing customer, except first
preference customers and the
Sacramento Municipal Utility District
(SM1JD), will be allocated 96 percent of
its pro rata share of the Base Resource
based on the ratio of the existing
customer's extension CRD to the total
existing customers' extension CRD. First
preference customers are subject to
specific legislation and are addressed in
Section Vl. SMUD will have a specific
allocation through 2014 based on a prior
settlement alreement.
Effective January 1. 2015. Western
will recalculate the percentages for all
existing customers, including SMUD
and customers receiving an allocation
from the 2005 Resource Pool. Western
will derive each customer's new
percentage based on the change in
SMUD's percentage described later in
this section and the reduction for the
2015 Resource Pool. The new
percentages will be applicable from
2015 through 2024.
A. Resource Available to Existing
Customers
Existing customers. excluding SMUD,
will have a right to purchase a
percentage of the Base Resource based
on the ratio of each existing customer's
extension CRD to the total of all existing
customer; extension CRD, excluding
SMUD, under the terms of this section.
Current extension CRD are set forth in
appendix A. From 2005 through 2014.
SMUD will have a right to purchase
360/1.152 of the Base Resource. as
referenced in the Settlement Agreement
with SMUD, Contract DE-MS65-
83WP59070. dated April 15. 1983. All
other existing customers have a right to
purchase the Base Resource amount
remaining after Western adjusts it to
accommodate SMUD's rights and the
2005 Resource Pool. After 2014.
Western will adjust SMUD's right to
purchase the Base Resource to reflect
the ratio of SMUD's extension CRD to
the total of all existing customers'
extension CRD. SMUD's right will also
be adjusted by 4 percent (2003 Resource
Pool adjustment) and up to an
additional 2 percent to accommodate
the 2015 Resource Pool.
Due to the diversity among existing
customers' loads. including SMUD's
load. existing customers' total extension
CRD exceeds the 1.152 MW referenced
in the SMUD Settlement Agreement
This Marketing Plan will result in
SMUD receiving a proportionately
greater share of the Base Resource than
other existing customers if the total
extension CRD remains at a level greater
than 1.152 MW. Therefore, existing
customers. excluding SMUD and first
preference customers, have the right to
request the Optional Purchase.
The following extension formulas are
used to determine existing customers'
purchase rights to the Base Resource.
Application of these formulas also
determines each existing customer's
right to the Optional Purchase. No
allocation percentage will be based on
an extension CRD greater than an
existing customers load.
1. For the period 2005 through 2014.
existing customers' purchase rights to
the CVP resource are calculated as
follows:
a. SMUD's purchase right - (360/1.152)
x BR
b. Other existing customers' purchase
rights - (A/B) x ABR
Where:
A An individual existing customer's
extension CRD. Western may adjust
"A" if Western determines that. as
of December 31, 2003, the extension
CRD is greater than the existing
customer's maximum monthly peak
load for the previous 3 years or if
the existing customers extension
CRD has been changed from the
amount set forth in Appendix A of
this Marketing Plan.
B - The sum of all values for -X%
excluding SMUD.
BR - Base Resource.
ABR - Adjusted Base Resource - (BR—
[(360/1.152) x BR)} x (100%—
RP%). After 2014. the SMUD
adjustment of [(360/1.152) x BR)
will be deleted.
RP% - 2005 Resource Pool percentage.
2. Existing customers' rights to the
Optional Purchase will be calculated as
follows:
Individual existing customer's Optional
Purchase - (AB) x TOP
Where:
TOP 3 Total Optional Purchase = [(360/
1.152)—(361/C)) x BR x (10096—
RP%).
C - The sum of all existing customers'
extension CRD. including SMUD.
B. Resource Pool Allocations
Western will reserve a portion of the
power available after 2004 for allocation
to eligible applicants.
1. Resource Pool Amount:
The 2005 Resource Pool consists of up
to 4 percent of the power resources
available after 2004. Western will also
establish a 2015 Resource Pool. The
2015 Resource Pool will consist of up to
2 percent of the power resource
available after 2014. plus a portion of
the resource that becomes available
from adjusting SMUD's percentage. That
portion will be equal to what SMUD
would have been required to contribute
to the 2005 Resource Pool. SMUD will
also be subject to the 2015 Resource
Pool adjustment of up to 2 percent.
34430 Federal Register / VoL 64, No. 122/Friday, June 25. 1999/Notices
Western will. at its discretion. allocate
a percentage of the 2005 Resource Pool
to each applicant that meets the
eligibility and allocation criteria. This
allocation percentage will be multiplied
by the 2005 Resource Pool percentage to
determine the applicant's percentage of
the Base Resource. Allocations from the
2015 Resource Pool will be determined
through a separate public process
conducted prior to 2015.
2. Eligibility Criteria:
Western will apply the following
eligibility criteria to all applicants
seeking a resource pool allocation under
this Marketing Plan.
a Applicants must meet the
preference requirements of Reclamation
law.
b. Applicants should be located
within Sierra Nevada Region's primary
marketing area If the Sierra Nevada
Region'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 trust be ready, willing.
and able to receive and use Federal
power. Federal power shall not be
resold to others.
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 under a
separate Federal Register notice.
L 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. Existing customers may apply for a
resource pool allocation if their
extension CRD, set forth in Appendix A.
is not more than 15 percent of their peak
load in the calendar year prior to the
Call for Applications, and not more than
10 MW.
h. Western will nornwIly not allocate
power to applicants with loads of less
than 1 MW; however. allocations to
applicants with loads which are 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.
3. Allocation Criteria:
Western will apply the following
allocation criteria to all applicants
receiving a resource pool allocation
under this 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 peak demand 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 2005
Resource Pool. will be subject to the
2015 Resource Pool adjustment.
e. Eligible Native American entities
will receive greater consideration for an
allocation of up to 65 percent of their
peak load In the calendar year prior to
the Call for Applications.
V. Cenral Criteria and Contract
Principles
Western will initially offer existing
customers a contract amendment for the
right to purchase a percentage of the
Base Resource after 2004. After
allocations are final, resource pool
allottees will be offered a contract to set
forth their allocation percentage. In
order to finalize the electric service
arrangements, new contracts will be
offered to new and existing customers
subsequent to the date product
commitments are required. as set forth
In this Marketing Plan. The following
criteria and contract principles will
apply to all contracts executed under
this Marketing Plan. except that certain
asteria may not apply to first preference
customers' contracts and 2015 Resource
Pool allottees' contracts:
A. Electric service contracts and
amendments shall be executed within 6
months of a contract offer, unless
otherwise agreed to in writing by
Western.
B. Allocation percentages provided
for in this Marketing Plan and the
electric service contracts shall be subject
to adjustment
C. All power supplied by Western
will be delivered pursuant to a
scheduling arrangement.
D. All power will be provided on a
take -or -pay basis. All costs associated
with the products and services
provided, including costs associated
with ancillary services. Optional
Purchases. Custom Products, and
transmission will be passed on to the
customer(s) using the product or
service.
E. Contract amendments and contracts
shall require a written commitment to a
percentage of the Base Resource and the
Optional Purchase on or before
December 31. 2000. and the Custom
Product on or before December 31. 2002.
Western may extend the final
commitment dates for the Base
Resource. Custom Product. and
Optional Purchase.
F. Contracts will include a clause
specifying criteria that customers must
meet on a continuous basis to be eligible
to receive electric service from Western.
G. Upon request, Western shall
provide. or assist each new and existing
customer in obtaining, transmission
arrangements for delivery of power
marketed under this Marketing Plan;
nonetheless. each entity is ultimately
responsible for obtaining its own
delivery arrangements to its load.
Transmission service over the CVP
system will be provided in accordance
with Section VII of this Marketing Pian.
H. Contracts shall provide for Western
to furnish electric service effective
January 1. 2005, through December 31.
2024.
L Specific products and services may
be provided for periods of time as
agreed to in the electric service contract
J. Contracts shall incorporate
Western's standard provisions for
electric service contracts, integrated
resource plans. and General Power
Contract Provisions. as determined by
Western.
K. 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
peak load.
L Any power not under contract may
be allocated at any time. at Western's
sole discretion. or sold as deemed
appro nate by Western.
M. Contracts will include a clause
providing for Western to adjust the
customers' allocation percentage for the
2015 Resource Pool.
N. 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.
Federal Register/Vol. 64, No. 122/Friday, June 25. 1999/Notices 34431
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 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.
To meet the requirements of the Acts.
Western published the Final
Withdrawal Proced-, (51 FR 7702,
Manch 5. 1986). This Marketing Plan
supersedes the Final Withdrawal
Procedures, or any successor
procedures. as of January 1. 2005.
Western will calculate and allocate
the maximum entitlements of first
preference customers (MEFPC). The
MEFPC is the maximum amount of
energy available to first preference
customers/entities. in accordance with
the followin
A. The MC 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 will use the
average of the previous 20 years of
historical annual generation. The TRD
MEFPC includes generation from
Trinity, Carr, and Spring Creek
Powerplants and a portion of the
Keswick Powerplant generation. The
MEFPC will be recalculated every 5
years. with the irritlal recalculation
pertaining to this Marketing Plan
completed by June 1. 2004.
B. Upon recalculation. if the MEFPC
from a first preference project is 10
percent above or below the currently
effective MEFPC from that fust
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 this
Marketing Plan will be based on the
power requirements of that first
preference customer/entity. The sum of
allocations of first preference power.
including losses, shall not exceed the
MEFPC from each first preference
project. or a county of origin's share of
the MEFPC, except as allowed under
Section VLG below.
D. Western will work with each first
preference custoraedentity to identify
its power requirements and the best use
of its first preference entitlement. Each
first preference custonw/entity may
elect one of the product and service
options set forth below. A commitment
to one of these options must be made in
writing no later than December 31,
2002. Va commitment is not made by
December 31, 2002, the full
requirements option will be deemed
chosen.
Under each option, 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 -parry
transmission.
1. Full Requirements: 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 tate. 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 under this option will be based
on usage.
2. Percentage: Western will determine
the allocation percentage in a manner
similar to that of the other customers
receiving a power allocation. The first
preference customers maximum
demand during the previous 4 years will
be used in determining an allocation
percentage of the power resource under
this option. Power will be provided on
a take -or -pay basis under this option.
The following will apply to each first
preference customer selecting this
percentage option.
a. First preference customers will not
be subject to adjustments for the
resource pool or the SMUD settlement,
and will not be eligible for the Optional
Purchase. Under this option. first
preference customers are eligible for the
Custom Product as defined in Section
M.
b. The allocation percentage made
available to each first preference
customer under this Marketing Plan will
be applied to the power resources which
have been adjusted for project use.
c. First preference customers will
have the opportunity to have their
allocation percentage adjusted. as
agreed to by Western. Iruaesses. up to a
fust preference customers share of the
MEFPC. will require a written notice 7
months In advance of the fust day of the
month in which the increase is
requested to become effective.
Justification for the increase must
accompany the request-
E.
equestE. 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 daze 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. 2005. under this Marketing
Plan must be received 18 months prior
to January 1. 2002 (i.e., July 1. 2000) for
Trinity County and 18 months prior w
April 5, 2002 (Le., October 5. 2000) for
Calaveras and Tuolumne Counties.
Other anniversary years applicable to
this Marketing Plan are 2007, 2012,
2017. and 2022.
F. If the request of a first preference
customer/entity for power, including
adjustment for Iosses. 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 fust 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 fust preference customer/
entity. Such power may be withdrawn
for use by a fust 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
fust preference rights.
I. Transmission service will be
provided in accordance with applicable
laws and Section VII of this Marketing
Plan.
34432 Federal Register/Vol. 64, No. 122/Friday. June 25, 1999/Notices
J. For planning popes• fist
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 VA
through C. F through L, and N of this
Marketing Plan will apply to first
preference customers.
VII. Transmission Service
Western will provide bundled or
unbundled transmission services as
appropriate In conjunction with its
power sales in a manner consistent with
FERC Orders. legislated mandates, or
California ISO Agreements. as
appropriate. Western will determine the
use of its transmission resources
concurrently with further development
of the products and services under this
Marketing Plan. Specific terms and
conditions for transmission will be
provided for in future service
agreements.
Daoea: June 10. 1999.
Michael S. Hacskayio.
Admirristratar.
Appendix A
This Appendix lists the existing customers'
CRD arnounts and extension percentages as
of May 1. 1999. Finan percentages wtH be
available after December 31. 2003.
Existing customers
CRD r (kW)
Extension
CRD (CRD 12
less excluded
types of
power) 3 (kW)
Percentage of
base resource
(2005-2014)
Air Farce --Beale _. _. ........___................ »...... ....... ............... ............. ..........
21,575
21,575
1.42461
Air Force --McClellan• ._....... _._.-.._...... ... __............... ..... ......... .»......... ....................
12,000
12.000
0.79237
Air Force-Onaulta' _ .__.._..-.-_............. »..__....._.._....._......... _ _..
1.500
1,500
0.09905
Air Force --Travis ____ _»..... « » ...«.««.............._...............» .....__. .._
12,851
12,651
0.83535
Air Forte-Travis(David Grant Medical Canter• ............._..»....................._......».................._.
4,000
4,000
026412
Air Force -Travis Wherry Housing ._«.................... ....... _.......».... _ ....... _..._....... ............
1,400
1,400
0.09244
Alarrroda. City of$ _....._........... _ _....._.........»...............»......».....»...».............
21.145
21,145
1.39622
Arvin -Edison Water Storage District ...... ........ ._«.................. ...................... .......... ».... ........
30,000
30.000
1.98092
Avenel, City of »-....___...... ........ ..................................... _...........
622
622
0.04107
Barna-Carbone Irrigation District ....»..._..« ... ........... _......... ...... ...»..... ........... _.......... .»..... ..........
3,700
3,700
024431
Bay Arca Rapid Transit District ..... __...._._._...-..... _....... ............................. ................
4.000
4,000
028412
Biggs, City of ....»......... ....... _...... ................. _.....» ._. »» .
4,200
4,200
0.2'!733
Broadview Water Ohhict _ »»....._ _ ... ._...._..... ..._...._...._..
500
500
0.03302
Byron -Bethany Irrigation District ...........
2,200
2,200
0.14527
Calaveras Public Power AgwM --.-.... _.......... ... »........ ............ ......._..........._.....»
8,000
................
.... .
Cafifamis State University, Sacramento --Nimbus »«...................... .....»..... _»...»
40
40
0.00264
Cawak) Water District _»._..._....... .... _..................... .».......................... ............... .....
500
500
0.03302
State Prison --Sacramento ....... ....... ....... »....... ............ _........ .... ...»».
2.300
2.300
0.15187
Conecbons- DoW Vocational Ike ........................... ................ -.. ....... ......... ...........
1.700
1.700
0.11225
CorrecW s- Northam California Yadh Center ...........».................»......_..........._.................«.
1.700
1.700
0.11225
Corrcdions-Sierra Conservation Center ..... ................... ............
3.000
............ _..
.._...................
Comedions-Vaeavnlle Medical FacBty -.-......».............»........................» .......__..._ _..
1,800
1,800
0.11886
Defense Logue Agency -Shaw Facility ..........................». ...__....
4.000
4,000
026412
Defense Logistics Agency -Tracy FaaTdy................................»............I..............................
3,800
3.800
0.25092
East Bay Municipal Utility Districts _..»_....._.... ...... ................... _»......._»...»....................
1.965
1,965
0.12975
East Contra Costa Irrigation District «........... ... ...«......... .......... _...... _................»»»...............
2.500
2.500
0.18508
Eastside Power Authoritys....... ......._._..... ............................ _.......................... ...................
2.961
2.961
0.19552
Ener9Y--Lawrcncs Berkeley National laboratory ........._................__......._..........................».
9.000
9.000
0.59426
Energy -L cis Livermore National Laboratory.._..»................_.....................»................».
44.711
44,711
2.95229
Energy -Lawrence Livermore. Site 300 .._ ... _.»_.............................................. »..»»...............
2.000
2.000
0.1320E
Energy -Stanford Linear Accelerator Center ............................... ...................... _.....-......._.
21.903
12.903
0.85199
Glenn Colusa Irtiga ion District .... ............................. .................. ................................... _....
3.343
3,343
0.22074
Gridley. City of ..»»..........._. ...... »..... _... ......... ._............................................... ......... ..... .......
9.400
9.400
0.62069
Healdsbw9, City ofs............... ........ ....__...... _........................ .-.................... .................. ...
3.241
3.241
021401
James Irrigation Districts _ ..... ............
987
987
0.06517
Kern-Tuiara Water Districts «.... .«»....._.............................».....»...«..........................»....
987
987
0.06517
Lassen Municipal Utility District ..... ....._.-..... _....................................................... »..............
3.000
3,000
0.1980E
Lodi, City ofs......... ...................... ....... _»«._.--.-................. _....... «.................................... ......
13.238
13.236
0.8739E
Lompoc. City ofs.._.._._.._-------------------_...-....-------------------------------------------------- ----
5.197
5.197
0.3431f
Lower Tule River irrigation Districts .._ ._.___..
1,965
1.965
0.1297
Merced Irrigation DbWd......... ___......... .......... _................... _........ ............. ... _... _......... _......
5.000
5.000
0.3301°
Modesto Irrigation Disirtal .. _....»_..._.................. ........... ........ ........... .......... __....... .-...... ..
10.805
10,805
0.7134E
NASA -Ames Research Canter _.._..._..__..._.-.- ......... ........ _....... _........... ....... .......................
80.000
80.000
52824;
.........._......._ ................__.
NASA -Moffett Federal Airfield• ....___.._ .....___............................
5,009
5.009
0.3307:
Navy -Naval Weapons Station, Concord .._................... ................ ..
2.898
2.898
0.1913E
Navy, -Naval Radio Station. Dixon __ ........... ............ ............. ........ ........ -...............................
915
915
O.OS=
Navy -Naval Air Station, l emooro 4 .... «...... _.......................................................... .............
23,000
23.000
1.5187(
Navy -Naval Comm ntineor 1 Station. Stockton .... . .............................. _........... _....................
3,700
3.700
024431
Oakland Army Base ... ..._.......... ............................ ...................................................................
2.275
2,275
0.1502:
Oakland. Pon of4 .._..._
1,000
1AW
0.0680:
Palo Alto, City of » ... ».»..................................... .................................................................._.....
175,000
175.000
11.5553:
Parks & Recreation. California Department of.._..........._.............................................._.... ....
100
100
0.0066(
Parks Reserve Fomes Training Area ..... ......... ».................................. ..... .... ............................ .
500
500
0.0330:
Patterson Water District ..--.. ........ ..... ................................. _............................................._._....
2.000
2.000
0.1320E
Pittsburg Power Company4........................... _-.-............................................................ .......
5,000
5.000
0.3301:
Plumas-Sierra Rural Electric C000erative------------------------------------------------------------------------------
25.000
25.000
1.6507E
Federal Register /Vol. 64, No. 122/Friday. June 25. 1999/Notices 34433
Existing customers
CRD I (M)
Exhonsian
CRD (CRD 12
less ad
tpowal a W yp" of
PerC=af
bass
(2005-2014)
Provident Irrigation District
750
750
0.04952
Rag Gulch Water District ..___...._......».__............_____..........._... _.._..__........».
Soo
Soo
0.03302
Reclamatlort District 2035 _....... .......». »..»_.._.._...._._....__...» _..»..............
1,600
1.600
0.10565
Redding. City of
116,000
116.000
7.65955
Rosovft City of _____..._»_..__..._.........
69.000
69.000
4—I561 I
Sacramento Municipal Uft DjWCt7
361,000
361.000
31-25000
Sacramento Municipal Utility District__._._......_»...__.......................___............»._...
100.000
.......
. . . ......
San Francisco. City and County c(4 ..»» ... .....»_.....__...._..»............_......................
2,600
2,600
0.17168
San Juan Water District . . .....
1,000
1.000
0.06603
San Luis Wates District . ».... _.» _.. ..»..._......_..........._......»._..._.........»»......._................
6,650
6,650
0.43910
Santa Clare Valley Water .....................
997
987
0.06517
Shasta Lake, City of
11,450
11.450
0.75605
Silicon Valley Power . .....
216,532
136.532
9.01529
Sonoma County Water Agency
1,500
1,500
0.09905
Trinity Pubic UdMu District . ........__..........__.__._..»
17,000
....... .
Tuolumne Pubic Power Agency ....»..........»»........._.».....»___...................._.............»
7.000
...... . . . .........
Turlock
rlock Irrigation ...._........»............
3.941
3.941
.26023
Ukiah. City ds
8.773
8.773
0.57929
University of CaffbaiiiL Davis ...................
14,682
14,682
0.96946
West Side Irrigation District
2.000
2.000
0.13206
West Stanislaus Irrigation District
5,200
5=0
0.34336
Wesdands Water Districts .... ...... ..._........»............_....__.._................. . . .. »
21,441
21.441
1.41576
2005 Resource Poolil . .............».. .. _.»__.........
I ...... --*---*,
1 2.75000
t 1,584,5371
1,390.5371
100.00000
TOW ..........»_ _._.._. » _» » ......».» - . ... . ......... ......
Notes:
I CRD WMOMOY laid off and temporarily ad ad to other existing; customers is reflected in this Appendix & under both CRO and extension
CRD, as being returned to the existing customer who received On original allocadw.
Moslem will reduce the extension CRD 9 Western determiners that, as of December 31. 2003, the extension CRD is greater than the existing
'StmMmen IM -PI
3 EV*MbM are diversity, curlabble. and *3t preference powerr, and peaking and excess capacity.
4Thew extension CRD could be adjusted as a result of the NDA Act procedures. Also. new NDA Act customem could be added through No-
vember 30. 2003.
50 sWestlands Water District has a right to 50 MW through December 31, 2004. Certain exhOV cuskinnors have been allocated a portion of the
bject !a wiUrdrawat for use tell Wesdards Water District. AGomdan paroeMa9es effective usRer Deosmbsr 31.2004. wig be adjusted to
reele•ct
mads as a result d Westiands Water Districts use and witlWrawals, fn accordance with Section IV A 1.b.
x3125
2f5:
RESOLUTION NO. 99-126
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE THE UNITED STATES
DEPARTMENT OF ENERGY WESTERN AREA POWER
ADMINISTRATION CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT AMENDMENT FOR A RIGHT TO PURCHASE
ELECTRIC SERVICE UNDER THE 2004 POWER MARKETING
PLAN WITH THE CITY OF LODI
BE IT RESOLVED that the City Manager is hereby authorized and directed to
execute the United States Department of Energy Western Area Power Administration
Amendment No. 2 to Western Contract No. 92 -SAO -20056 on behalf of the City of Lodi.
Dated: August 18, 1999
I hereby certify that Resolution No. 99-126 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held August 18, 1999, by the following
vote:
AYES: COUNCIL MEMBERS - Hitchcock, Mann, Nakanishi and Land (Mayor)
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Pennino
ALICE M. REeIMCHE
City Clerk
99-126