Final Allocation of Olmsted Powerplant Replacement Project, 45121-45124 [2018-19211]

Download as PDF daltland on DSKBBV9HB2PROD with NOTICES Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Notices Description: Baseline eTariff Filing: Reactive Power Compensation Filing to be effective 10/28/2018. Filed Date: 8/29/18. Accession Number: 20180829–5121. Comments Due: 5 p.m. ET 9/19/18. Docket Numbers: ER18–2338–000. Applicants: Midcontinent Independent System Operator, Inc. Description: § 205(d) Rate Filing: 2018–08–29_SA 3151 Rosewater Wind Farm-NIPSCO GIA (J513) to be effective 8/15/2018. Filed Date: 8/29/18. Accession Number: 20180829–5123. Comments Due: 5 p.m. ET 9/19/18. Docket Numbers: ER18–2339–000. Applicants: Midcontinent Independent System Operator, Inc. Description: § 205(d) Rate Filing: 2018–08–29_SA 3152 Polaris Wind Energy-METC GIA (J533) to be effective 8/15/2018. Filed Date: 8/29/18. Accession Number: 20180829–5128. Comments Due: 5 p.m. ET 9/19/18. Docket Numbers: ER18–2340–000. Applicants: Midcontinent Independent System Operator, Inc. Description: § 205(d) Rate Filing: 2018–08–29_SA 3153 Crescent WindMETC GIA (J538) to be effective 8/15/ 2018. Filed Date: 8/29/18. Accession Number: 20180829–5132. Comments Due: 5 p.m. ET 9/19/18. Docket Numbers: ER18–2341–000. Applicants: California Independent System Operator Corporation. Description: § 205(d) Rate Filing: 2018–08–29 Energy Imbalance Market Bid Adder Amendment to be effective 11/1/2018. Filed Date: 8/29/18. Accession Number: 20180829–5135. Comments Due: 5 p.m. ET 9/19/18. Docket Numbers: ER18–2342–000. Applicants: GridLiance Heartland LLC. Description: Baseline eTariff Filing: GridLiance Heartland LLC Formula Rate Template Filing to be effective 10/29/ 2018. Filed Date: 8/29/18. Accession Number: 20180829–5141. Comments Due: 5 p.m. ET 9/19/18. Docket Numbers: ER18–2343–000. Applicants: Duke Energy Carolinas, LLC. Description: § 205(d) Rate Filing: Amendment to DEC–PMPA NITSA (SA– 355) to be effective 9/1/2018. Filed Date: 8/30/18. Accession Number: 20180830–5030. Comments Due: 5 p.m. ET 9/20/18. Docket Numbers: ER18–2344–000. Applicants: Headwaters Wind Farm LLC. VerDate Sep<11>2014 17:04 Sep 04, 2018 Jkt 244001 Description: Baseline eTariff Filing: Reactive Power Compnsation Filing to be effective 10/29/2018. Filed Date: 8/30/18. Accession Number: 20180830–5031. Comments Due: 5 p.m. ET 9/20/18. Docket Numbers: ER18–2345–000. Applicants: PJM Interconnection, L.L.C. Description: § 205(d) Rate Filing: Original WMPA, SA No. 5156; Queue No. AB1–157 to be effective 7/31/2018. Filed Date: 8/30/18. Accession Number: 20180830–5051. Comments Due: 5 p.m. ET 9/20/18. The filings are accessible in the Commission’s eLibrary system by clicking on the links or querying the docket number. Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission’s Regulations (18 CFR 385.211 and 385.214) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding. eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: http://www.ferc.gov/ docs-filing/efiling/filing-req.pdf. For other information, call (866) 208–3676 (toll free). For TTY, call (202) 502–8659. Dated: August 30, 2018. Nathaniel J. Davis, Sr., Deputy Secretary. BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission Take notice that the Commission has received the following Natural Gas Pipeline Rate and Refund Report filings: Filings Instituting Proceedings Docket Numbers: RP18–1084–000. Applicants: Texas Eastern Transmission, LP. Description: Compliance filing 2018 Operational Entitlements Filing to be effective N/A. Filed Date: 8/27/18. Accession Number: 20180827–5044. Comments Due: 5 p.m. ET 9/10/18. Docket Numbers: RP18–1085–000. Applicants: Rockies Express Pipeline LLC. Fmt 4703 Sfmt 4703 Dated: August 28, 2018. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2018–19138 Filed 9–4–18; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Western Area Power Administration Western Area Power Administration, DOE. ACTION: Notice of final allocation of Olmsted Powerplant Replacement Project. AGENCY: Western Area Power Administration (WAPA) Colorado River Storage Project (CRSP) Management Center, a Federal power marketing administration within the Department of Energy, announces its Olmsted Powerplant Replacement Project (Olmsted) Final Allocation of Energy. The Final 2018 Olmsted Power Marketing Plan and Call for Applications was published on October 11, 2017, and set forth that an application for an allocation of energy from Olmsted was due by December 11, 2017. WAPA reviewed and considered the applications received and published the Proposed Allocations in the Federal Register on June 13, 2018. There was a 30-day comment period for the proposed allocations. WAPA has considered the comments received, and SUMMARY: Combined Notice of Filings Frm 00034 Description: § 4(d) Rate Filing: Neg Rate 2018–08–25 Encana to be effective 8/25/2018. Filed Date: 8/27/18. Accession Number: 20180827–5131. Comments Due: 5 p.m. ET 9/10/18. The filings are accessible in the Commission’s eLibrary system by clicking on the links or querying the docket number. Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission’s Regulations (18 CFR 385.211 and 385.214) on or before 5 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding. eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: http://www.ferc.gov/ docs-filing/efiling/filing-req.pdf. For other information, call (866) 208–3676 (toll free). For TTY, call (202) 502–8659. Final Allocation of Olmsted Powerplant Replacement Project [FR Doc. 2018–19264 Filed 9–4–18; 8:45 am] PO 00000 45121 E:\FR\FM\05SEN1.SGM 05SEN1 daltland on DSKBBV9HB2PROD with NOTICES 45122 Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Notices this Federal Register notice establishes the final allocations. DATES: The final allocations will be effective on October 5, 2018. ADDRESSES: Information regarding the Final Allocation of Olmsted Power Replacement Project, including comments, letters, and other supporting documents, is available for public inspection and copying at the CRSP Management Center, Western Area Power Administration, 299 South Main Street, Suite 200, Salt Lake City, Utah. Public comments and related information may be accessed at https:// www.wapa.gov/regions/CRSP/ PowerMarketing/Pages/ProposedAllocations.aspx. FOR FURTHER INFORMATION CONTACT: Mr. Brent Osiek, Vice President of Power Marketing for CRSP, (801) 524–5495; or Mr. Lyle Johnson, Public Utilities Specialist, (801) 524–5585. Written requests for information should be sent to Western Area Power Administration, CRSP Management Center, 299 South Main Street, Suite 200, Salt Lake City, UT 84111; faxed to (801) 524–5017; or emailed to: osiek@wapa.gov. SUPPLEMENTARY INFORMATION: The United States acquired the Olmsted Powerplant in 1990 through condemnation proceedings in order to secure the water rights associated with the Olmsted Powerplant deemed essential to the Central Utah Project (CUP). The CUP is a participating project of the Colorado River Storage Project. As part of the condemnation proceedings, PacifiCorp continued Olmsted operations until 2015; after that time, the operation of the facility became the responsibility of the Department of the Interior. The existing Olmsted Powerplant greatly exceeded its operational life, and a replacement facility was needed for the generation of power and the preservation of associated nonconsumptive water rights. On February 4, 2015, the Implementation Agreement (Agreement) for Olmsted was signed by Central Utah Water Conservancy District (District); the Department of the Interior, Bureau of Reclamation; and WAPA (Participants). The Agreement sets forth the responsibilities of the Participants and identifies funding of Olmsted. The District will construct, operate, maintain, and replace the Olmsted Powerplant and incidental facilities in connection with CUP operations including power generation. WAPA is responsible for marketing the Olmsted energy, which is anticipated to be available in the late summer or early fall of 2018. Power production will be incidental to the VerDate Sep<11>2014 17:04 Sep 04, 2018 Jkt 244001 delivery of water and will only be available when water is present. Therefore, only energy, without capacity, will be available for marketing. It is expected that the annual energy production from Olmsted will average around 27,000,000 kilowatthours per year. The Final 2018 Olmsted Power Marketing Plan and Call for Applications was published in the Federal Register on October 11, 2017 (82 FR 47201), and set forth that an application for an allocation of energy from Olmsted was due by December 11, 2017. After review of the applications, the Proposed Allocation of Olmsted Powerplant Replacement Project was published in the Federal Register on June 13, 2018 (83 FR 27599). The 30-day comment period closed on July 13, 2018. After considering the comments received, WAPA is now publishing the Final Allocations. Response to Comments on Olmsted Final Allocation of Energy WAPA received numerous comments about its Olmsted final allocation of energy during the comment period. WAPA reviewed and considered all comments received, and this section summarizes and responds to those comments. For brevity, when it was possible to do so without affecting the meaning of the statements, the public comments below were paraphrased. Comment: Several commenters supported the proposed allocation of Olmsted energy. Response: WAPA acknowledges the comments in support of the proposed allocations. Comment: Several commenters suggested specific changes that should occur in the next marketing plan. Response: Issues concerning future marketing plan criteria or suggested changes to the geographic marketing areas are more appropriately addressed during the public process for future marketing plans for the Olmsted Powerplant and are beyond the scope of the proposed allocation comment process. Commenters will have the opportunity to express their suggestions during the public process for future Olmsted marketing plans. Comment: One commenter requested an additional allocation of Olmsted energy, citing their future electrical resource needs and the limited amounts of Federal power they currently receive. Response: WAPA does not have the authority to develop resources to meet customers’ future electrical resource needs and load growth. WAPA is limited to marketing only the resources authorized by Congress as part of Federal water development projects. PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 Comment: One commenter asked how the allocations were developed, especially for the entities with small percentages of load served by Federal power. Response: The percentage of applicants’ load served by Federal power was determined by comparing current loads, as submitted in the Applicant Profile Data, to that applicant’s current allocation(s) of Federal power. Pursuant to the Final Power Marketing Criteria, allocations of energy from Olmsted were made based on a percentage of annual generation rather than fixed quantities of energy. WAPA received applications from four entities representing a total of 14 eligible applicants. Due to its role in the construction, operation, maintenance, and replacement of Olmsted, WAPA awarded the District 30 percent of the annual generation at Olmsted. As explained more thoroughly below, WAPA also awarded Utah Municipal Power Agency (UMPA) with 30 percent, largely based on UMPA’s facilitating exchange and interchange accounting services. WAPA determined it would use the remaining energy to increase allocations to those applicants with the least amount of existing Federal allocations. Four of the applicants receive less than 10 percent of their energy resources from Federal power while all other applicants receive more than 20 percent. Therefore, WAPA evenly divided the remaining 40 percent of the annual generation at Olmsted among those four applicants. Comment: One commenter asked how the costs and fees associated with interconnecting with Provo, Utah, compare to interconnecting with PacifiCorp. Response: The cost of interconnecting to the Provo system was estimated to be much less than connecting to the facilities of PacifiCorp. WAPA requested multiple interconnection studies from PacifiCorp to determine potential costs and infrastructure requirements. PacifiCorp’s costs for interconnecting at its congested Hale Substation were significantly higher than interconnecting with Provo at the same voltage and at essentially the same location; the overall savings was about $1.4 million. Additionally, interconnecting with Provo allowed further reduction in costs to customers by allowing WAPA to enter into a Scheduling and Interchange Agreement with the UMPA, which serves as a scheduling and resource agent for Provo. This allowed Olmsted energy to be delivered to customers under current transmission arrangements rather than E:\FR\FM\05SEN1.SGM 05SEN1 daltland on DSKBBV9HB2PROD with NOTICES Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Notices requesting new agreements with PacifiCorp. Comment: One commenter asked about the scheduling and displacement agreement that was developed with UMPA and inquired if a similar agreement was pursued with any other entities. Response: Only Provo and PacifiCorp have facilities in the vicinity of the Olmsted Powerplant to directly receive the power to facilitate a scheduling and displacement agreement. Interconnecting to any other entities would require construction of extensive transmission facilities in an urban area and would have been cost prohibitive. Comment: One commenter asked if UMPA received any type of priority in receiving an allocation and why UMPA received a 30 percent allocation since it already has a relatively large Federal allocation of hydropower. Response: UMPA did not receive priority over the other applicants. UMPA was awarded 30 percent in consideration for providing scheduling and interchange services. Comment: One commenter asked why UMPA received an allocation, rather than its individual member cities, since some members of UMPA are outside of the marketing area. Response: UMPA applied for an allocation of power on behalf of its specific members located in the marketing area. Comment: One commenter asked why UMPA received an allocation rather than payment for scheduling and interchange services. Response: The 30 percent allocation is in consideration of the overall savings that the arrangement with UMPA provides to all recipients of Olmsted energy as well as facilitating exchange and interchange accounting services. Without its current arrangement with UMPA, WAPA would need to enter into a separate transmission agreement with PacifiCorp to deliver the energy, which would likely result in cost-prohibitive transmission and ancillary expenses. Based on the published firm transmission rates of PacifiCorp, WAPA would need to pay approximately $208,000 under PacifiCorp’s Open Access Transmission Tariff firm rate schedules, not including ancillary service charges. A yearly charge for scheduling services would be, based on WAPA’s experience, around $25,000/ year. Assuming an average year and a cost of $30 per megawatthour, the services WAPA receives from UMPA would be worth approximately $243,000/year for Olmsted power. Therefore, WAPA believes that an allocation to UMPA of 30 percent VerDate Sep<11>2014 17:04 Sep 04, 2018 Jkt 244001 approximates the value of the displacement and exchange agreement. Comment: One commenter stated that its Salt Lake City Area Integrated Projects (SLCA/IP) contract rate of delivery (CROD) is in conflict with the Olmsted historical generation profile and asked how its SLCA/IP allocation will be handled and if an energy interchange account will be required. Response: WAPA is aware that the customer has an SLCA/IP capacity allocation, or CROD, during the summer season and not during the winter season. Olmsted is an energy-only product and will be delivered under the customer’s SLCA/IP CROD. The Olmsted Powerplant will generate energy in both the summer and winter seasons. WAPA will work with the customer and its scheduling agent to develop procedures that ensure that the customer will receive all of its allocated Olmsted energy. Olmsted Final Allocation of Energy Pursuant to the Final Power Marketing Criteria, allocations of energy from Olmsted were made based on a percentage of annual generation rather than fixed quantities of energy. Olmsted is a ‘‘take all, pay all’’ project; the annual revenue requirement does not depend on the amount of energy available each year. Customers with an allocation will receive a share of the energy and will annually pay a proportional share of the operation, maintenance, and replacement expenses in 12 monthly installments. Applications were received from four entities representing a total of 14 eligible applicants. In considering the Power Marketing Criteria, priority was given to the District due to its role in the construction, operation, maintenance, and replacement of Olmsted. The District will receive 30 percent of Olmsted’s annual generation. Olmsted will be electrically interconnected to Provo’s distribution and transmission facilities. Provo is a participant of UMPA, a joint-action agency responsible for supplying the wholesale power needs to Provo and other municipal electric utilities in the area. UMPA, a long-term power customer of WAPA, has agreed to accept all Olmsted energy as it is generated and, under a scheduling and displacement agreement with WAPA, provide Olmsted customers with their respective Olmsted allocation amounts from a portion of UMPA’s allocation of SLCA/IP resources, which is also marketed by WAPA. This arrangement will allow the Olmsted recipients more flexibility since it will be easier to schedule this SLCA/IP resource, which PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 45123 is essentially exchanged for Olmsted generation and it allows the use of existing scheduling and transmission wheeling arrangements. In consideration for providing these arrangements and the overall savings it is anticipated to generate, UMPA will receive a 30 percent allocation of Olmsted generation. After consideration of the allocations to the District and UMPA, WAPA determined it would use the remaining Olmsted energy to increase the allocations of those applicants that have the lowest percentages of their current loads served by Federal power. Four of the applicants receive less than 10 percent of their energy resources from Federal power. All of the other applicants currently receive over 20 percent of their energy requirements from Federal allocations. Therefore, WAPA awarded 10 percent of the Olmsted generation to the four applicants receiving less than 10 percent of their energy from Federal sources. The following table shows the final allocation percentages of the annual energy production of Olmsted: Applicant Central Utah Water Conservancy District ......................... Utah Municipal Power Agency Lehi City, Utah .......................... Kaysville City, Utah .................. Weber Basin Water Conservancy District ......................... Springville City, Utah ................ Percentage 30 30 10 10 10 10 With the exception of UMPA, all of the recipients receive scheduling and delivery services for their allocations of Federal power from Utah Associated Municipal Power Systems (UAMPS) under SLCA/IP Contract No. 87–SLC– 0037. Since Olmsted energy will be delivered by means of transmission and scheduling arrangements existing for Contract No. 87–SLC–0037 with UAMPS, the allocations to these recipients may be handled in a similar manner. WAPA plans to enter into contracts with customers after publication of this Federal Register notice. Availability of Information Documents developed or retained by WAPA during this public process will be available, by appointment, for inspection and copying at the CRSP Management Center, 299 South Main Street, Suite 200, Salt Lake City, Utah. The comments received during the 30day comment period have been posted to WAPA’s website at the following address: https://www.wapa.gov/regions/ E:\FR\FM\05SEN1.SGM 05SEN1 45124 Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Notices CRSP/PowerMarketing/Pages/powermarketing.aspx. ACTION: Environmental Compliance In compliance with the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321–4347), the Council on Environmental Quality Regulations (40 CFR parts 1500–1508), and DOE NEPA Regulations (10 CFR part 1021), WAPA issued a Finding of No Significant Impact (FONSI) on January 13, 2017. The FONSI and other NEPA compliance documentation may be found at https://www.wapa.gov/regions/ CRSP/environment/Pages/environment. aspx. Regulatory Flexibility Analysis The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601, et seq., requires a Federal agency to perform a regulatory flexibility analysis whenever the agency is required by law to publish a general notice of proposed rulemaking for any proposed rule unless the agency can certify that the rule will not have a significant economic impact on a substantial number of small entities. In defining the term ‘‘rule,’’ the RFA specifies that a ‘‘rule’’ does not include ‘‘a rule of particular applicability relating to rates [and] services . . . or to valuations, costs or accounting, or practices relating to such rates [and] services. . . .’’ 5 U.S.C. 601. WAPA has determined that this action relates to rates or services offered by WAPA and, therefore, is not a rule within the purview of the RFA. Determination Under Executive Order 12866 WAPA has an exemption from centralized regulatory review under Executive Order 12866; accordingly, no clearance of this Federal Register notice by the Office of Management and Budget is required. Dated: August 24, 2018. Mark A. Gabriel, Administrator. [FR Doc. 2018–19211 Filed 9–4–18; 8:45 am] BILLING CODE 6450–01–P daltland on DSKBBV9HB2PROD with NOTICES ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OAR–2003–0078; FRL–9983–34– OAR] Proposed Information Collection Request; Comment Request; Landfill Methane Outreach Program (Renewal) Environmental Protection Agency (EPA). VerDate Sep<11>2014 17:04 Sep 04, 2018 Jkt 244001 The Environmental Protection Agency is planning to submit an information collection request (ICR), ‘‘Landfill Methane Outreach Program’’ (EPA ICR No. 1849.08, OMB Control No. 2060–0446) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act (44 U.S.C. 3501 et seq.). Before doing so, EPA is soliciting public comments on specific aspects of the proposed information collection as described below. This is a proposed extension of the ICR, which is currently approved through May 31, 2019. An Agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. DATES: Comments must be submitted on or before November 5, 2018. ADDRESSES: Submit your comments, referencing Docket ID No. EPA–HQ– OAR–2003–0078, online using www.regulations.gov (our preferred method), by email to a-and-r-Docket@ epa.gov, or by mail to: EPA Docket Center, Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania Ave. NW, Washington, DC 20460. EPA’s policy is that all comments received will be included in the public docket without change including any personal information provided, unless the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. FOR FURTHER INFORMATION CONTACT: Lauren Aepli, Climate Change Division, Office of Atmospheric Programs, (6207A), Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460; telephone number: (202) 343–9423; fax number: (202) 343–2342; email address: aepli.lauren@epa.gov. SUPPLEMENTARY INFORMATION: Supporting documents which explain in detail the information that the EPA will be collecting are available in the public docket for this ICR. The docket can be viewed online at www.regulations.gov or in person at the EPA Docket Center, WJC West, Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone number for the Docket Center is 202–566–1744. For additional information about EPA’s public docket, visit http://www.epa.gov/dockets. Pursuant to section 3506(c)(2)(A) of the PRA, EPA is soliciting comments and information to enable it to: (i) SUMMARY: Procedural Requirements AGENCY: Notice. PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility; (ii) evaluate the accuracy of the Agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) enhance the quality, utility, and clarity of the information to be collected; and (iv) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. EPA will consider the comments received and amend the ICR as appropriate. The final ICR package will then be submitted to OMB for review and approval. At that time, EPA will issue another Federal Register notice to announce the submission of the ICR to OMB and the opportunity to submit additional comments to OMB. Abstract: The Landfill Methane Outreach Program (LMOP), created by EPA as part of the United States’ commitment to reduce greenhouse gas emissions under the United Nations Framework Convention on Climate Change, is a voluntary program designed to encourage and facilitate the development of environmentally and economically sound landfill gas (LFG) energy projects across the United States to reduce methane emissions from landfills. LMOP meets these objectives by educating local governments and communities about the benefits of LFG recovery and use; building partnerships between state agencies, industry, energy service providers, local communities, and other stakeholders interested in developing this valuable resource in their community; and providing tools to evaluate LFG energy potential. LMOP signed voluntary Memoranda of Understanding (MOUs) with these organizations to enlist their support in promoting cost-effective LFG utilization. The information collection includes completion and submission of the MOU, periodic information updates, and annual completion and submission of basic information on landfill methane projects with which the organizations are involved as an effort to update the LMOP Landfill and Landfill Gas Energy Project Database. The information collection is to be utilized to maintain up-to-date data and information about LMOP Partners and LFG energy projects with which they are involved. The data E:\FR\FM\05SEN1.SGM 05SEN1

Agencies

[Federal Register Volume 83, Number 172 (Wednesday, September 5, 2018)]
[Notices]
[Pages 45121-45124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19211]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Final Allocation of Olmsted Powerplant Replacement Project

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of final allocation of Olmsted Powerplant Replacement 
Project.

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SUMMARY: Western Area Power Administration (WAPA) Colorado River 
Storage Project (CRSP) Management Center, a Federal power marketing 
administration within the Department of Energy, announces its Olmsted 
Powerplant Replacement Project (Olmsted) Final Allocation of Energy. 
The Final 2018 Olmsted Power Marketing Plan and Call for Applications 
was published on October 11, 2017, and set forth that an application 
for an allocation of energy from Olmsted was due by December 11, 2017. 
WAPA reviewed and considered the applications received and published 
the Proposed Allocations in the Federal Register on June 13, 2018. 
There was a 30-day comment period for the proposed allocations. WAPA 
has considered the comments received, and

[[Page 45122]]

this Federal Register notice establishes the final allocations.

DATES: The final allocations will be effective on October 5, 2018.

ADDRESSES: Information regarding the Final Allocation of Olmsted Power 
Replacement Project, including comments, letters, and other supporting 
documents, is available for public inspection and copying at the CRSP 
Management Center, Western Area Power Administration, 299 South Main 
Street, Suite 200, Salt Lake City, Utah. Public comments and related 
information may be accessed at https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/Proposed-Allocations.aspx.

FOR FURTHER INFORMATION CONTACT: Mr. Brent Osiek, Vice President of 
Power Marketing for CRSP, (801) 524-5495; or Mr. Lyle Johnson, Public 
Utilities Specialist, (801) 524-5585. Written requests for information 
should be sent to Western Area Power Administration, CRSP Management 
Center, 299 South Main Street, Suite 200, Salt Lake City, UT 84111; 
faxed to (801) 524-5017; or emailed to: [email protected].

SUPPLEMENTARY INFORMATION: The United States acquired the Olmsted 
Powerplant in 1990 through condemnation proceedings in order to secure 
the water rights associated with the Olmsted Powerplant deemed 
essential to the Central Utah Project (CUP). The CUP is a participating 
project of the Colorado River Storage Project. As part of the 
condemnation proceedings, PacifiCorp continued Olmsted operations until 
2015; after that time, the operation of the facility became the 
responsibility of the Department of the Interior.
    The existing Olmsted Powerplant greatly exceeded its operational 
life, and a replacement facility was needed for the generation of power 
and the preservation of associated non-consumptive water rights. On 
February 4, 2015, the Implementation Agreement (Agreement) for Olmsted 
was signed by Central Utah Water Conservancy District (District); the 
Department of the Interior, Bureau of Reclamation; and WAPA 
(Participants). The Agreement sets forth the responsibilities of the 
Participants and identifies funding of Olmsted. The District will 
construct, operate, maintain, and replace the Olmsted Powerplant and 
incidental facilities in connection with CUP operations including power 
generation.
    WAPA is responsible for marketing the Olmsted energy, which is 
anticipated to be available in the late summer or early fall of 2018. 
Power production will be incidental to the delivery of water and will 
only be available when water is present. Therefore, only energy, 
without capacity, will be available for marketing. It is expected that 
the annual energy production from Olmsted will average around 
27,000,000 kilowatthours per year. The Final 2018 Olmsted Power 
Marketing Plan and Call for Applications was published in the Federal 
Register on October 11, 2017 (82 FR 47201), and set forth that an 
application for an allocation of energy from Olmsted was due by 
December 11, 2017. After review of the applications, the Proposed 
Allocation of Olmsted Powerplant Replacement Project was published in 
the Federal Register on June 13, 2018 (83 FR 27599). The 30-day comment 
period closed on July 13, 2018. After considering the comments 
received, WAPA is now publishing the Final Allocations.

Response to Comments on Olmsted Final Allocation of Energy

    WAPA received numerous comments about its Olmsted final allocation 
of energy during the comment period. WAPA reviewed and considered all 
comments received, and this section summarizes and responds to those 
comments. For brevity, when it was possible to do so without affecting 
the meaning of the statements, the public comments below were 
paraphrased.
    Comment: Several commenters supported the proposed allocation of 
Olmsted energy.
    Response: WAPA acknowledges the comments in support of the proposed 
allocations.
    Comment: Several commenters suggested specific changes that should 
occur in the next marketing plan.
    Response: Issues concerning future marketing plan criteria or 
suggested changes to the geographic marketing areas are more 
appropriately addressed during the public process for future marketing 
plans for the Olmsted Powerplant and are beyond the scope of the 
proposed allocation comment process. Commenters will have the 
opportunity to express their suggestions during the public process for 
future Olmsted marketing plans.
    Comment: One commenter requested an additional allocation of 
Olmsted energy, citing their future electrical resource needs and the 
limited amounts of Federal power they currently receive.
    Response: WAPA does not have the authority to develop resources to 
meet customers' future electrical resource needs and load growth. WAPA 
is limited to marketing only the resources authorized by Congress as 
part of Federal water development projects.
    Comment: One commenter asked how the allocations were developed, 
especially for the entities with small percentages of load served by 
Federal power.
    Response: The percentage of applicants' load served by Federal 
power was determined by comparing current loads, as submitted in the 
Applicant Profile Data, to that applicant's current allocation(s) of 
Federal power. Pursuant to the Final Power Marketing Criteria, 
allocations of energy from Olmsted were made based on a percentage of 
annual generation rather than fixed quantities of energy. WAPA received 
applications from four entities representing a total of 14 eligible 
applicants. Due to its role in the construction, operation, 
maintenance, and replacement of Olmsted, WAPA awarded the District 30 
percent of the annual generation at Olmsted. As explained more 
thoroughly below, WAPA also awarded Utah Municipal Power Agency (UMPA) 
with 30 percent, largely based on UMPA's facilitating exchange and 
interchange accounting services. WAPA determined it would use the 
remaining energy to increase allocations to those applicants with the 
least amount of existing Federal allocations. Four of the applicants 
receive less than 10 percent of their energy resources from Federal 
power while all other applicants receive more than 20 percent. 
Therefore, WAPA evenly divided the remaining 40 percent of the annual 
generation at Olmsted among those four applicants.
    Comment: One commenter asked how the costs and fees associated with 
interconnecting with Provo, Utah, compare to interconnecting with 
PacifiCorp.
    Response: The cost of interconnecting to the Provo system was 
estimated to be much less than connecting to the facilities of 
PacifiCorp. WAPA requested multiple interconnection studies from 
PacifiCorp to determine potential costs and infrastructure 
requirements. PacifiCorp's costs for interconnecting at its congested 
Hale Substation were significantly higher than interconnecting with 
Provo at the same voltage and at essentially the same location; the 
overall savings was about $1.4 million. Additionally, interconnecting 
with Provo allowed further reduction in costs to customers by allowing 
WAPA to enter into a Scheduling and Interchange Agreement with the 
UMPA, which serves as a scheduling and resource agent for Provo. This 
allowed Olmsted energy to be delivered to customers under current 
transmission arrangements rather than

[[Page 45123]]

requesting new agreements with PacifiCorp.
    Comment: One commenter asked about the scheduling and displacement 
agreement that was developed with UMPA and inquired if a similar 
agreement was pursued with any other entities.
    Response: Only Provo and PacifiCorp have facilities in the vicinity 
of the Olmsted Powerplant to directly receive the power to facilitate a 
scheduling and displacement agreement. Interconnecting to any other 
entities would require construction of extensive transmission 
facilities in an urban area and would have been cost prohibitive.
    Comment: One commenter asked if UMPA received any type of priority 
in receiving an allocation and why UMPA received a 30 percent 
allocation since it already has a relatively large Federal allocation 
of hydropower.
    Response: UMPA did not receive priority over the other applicants. 
UMPA was awarded 30 percent in consideration for providing scheduling 
and interchange services.
    Comment: One commenter asked why UMPA received an allocation, 
rather than its individual member cities, since some members of UMPA 
are outside of the marketing area.
    Response: UMPA applied for an allocation of power on behalf of its 
specific members located in the marketing area.
    Comment: One commenter asked why UMPA received an allocation rather 
than payment for scheduling and interchange services.
    Response: The 30 percent allocation is in consideration of the 
overall savings that the arrangement with UMPA provides to all 
recipients of Olmsted energy as well as facilitating exchange and 
interchange accounting services. Without its current arrangement with 
UMPA, WAPA would need to enter into a separate transmission agreement 
with PacifiCorp to deliver the energy, which would likely result in 
cost-prohibitive transmission and ancillary expenses. Based on the 
published firm transmission rates of PacifiCorp, WAPA would need to pay 
approximately $208,000 under PacifiCorp's Open Access Transmission 
Tariff firm rate schedules, not including ancillary service charges. A 
yearly charge for scheduling services would be, based on WAPA's 
experience, around $25,000/year. Assuming an average year and a cost of 
$30 per megawatthour, the services WAPA receives from UMPA would be 
worth approximately $243,000/year for Olmsted power. Therefore, WAPA 
believes that an allocation to UMPA of 30 percent approximates the 
value of the displacement and exchange agreement.
    Comment: One commenter stated that its Salt Lake City Area 
Integrated Projects (SLCA/IP) contract rate of delivery (CROD) is in 
conflict with the Olmsted historical generation profile and asked how 
its SLCA/IP allocation will be handled and if an energy interchange 
account will be required.
    Response: WAPA is aware that the customer has an SLCA/IP capacity 
allocation, or CROD, during the summer season and not during the winter 
season. Olmsted is an energy-only product and will be delivered under 
the customer's SLCA/IP CROD. The Olmsted Powerplant will generate 
energy in both the summer and winter seasons. WAPA will work with the 
customer and its scheduling agent to develop procedures that ensure 
that the customer will receive all of its allocated Olmsted energy.

Olmsted Final Allocation of Energy

    Pursuant to the Final Power Marketing Criteria, allocations of 
energy from Olmsted were made based on a percentage of annual 
generation rather than fixed quantities of energy. Olmsted is a ``take 
all, pay all'' project; the annual revenue requirement does not depend 
on the amount of energy available each year. Customers with an 
allocation will receive a share of the energy and will annually pay a 
proportional share of the operation, maintenance, and replacement 
expenses in 12 monthly installments.
    Applications were received from four entities representing a total 
of 14 eligible applicants. In considering the Power Marketing Criteria, 
priority was given to the District due to its role in the construction, 
operation, maintenance, and replacement of Olmsted. The District will 
receive 30 percent of Olmsted's annual generation.
    Olmsted will be electrically interconnected to Provo's distribution 
and transmission facilities. Provo is a participant of UMPA, a joint-
action agency responsible for supplying the wholesale power needs to 
Provo and other municipal electric utilities in the area. UMPA, a long-
term power customer of WAPA, has agreed to accept all Olmsted energy as 
it is generated and, under a scheduling and displacement agreement with 
WAPA, provide Olmsted customers with their respective Olmsted 
allocation amounts from a portion of UMPA's allocation of SLCA/IP 
resources, which is also marketed by WAPA. This arrangement will allow 
the Olmsted recipients more flexibility since it will be easier to 
schedule this SLCA/IP resource, which is essentially exchanged for 
Olmsted generation and it allows the use of existing scheduling and 
transmission wheeling arrangements. In consideration for providing 
these arrangements and the overall savings it is anticipated to 
generate, UMPA will receive a 30 percent allocation of Olmsted 
generation.
    After consideration of the allocations to the District and UMPA, 
WAPA determined it would use the remaining Olmsted energy to increase 
the allocations of those applicants that have the lowest percentages of 
their current loads served by Federal power. Four of the applicants 
receive less than 10 percent of their energy resources from Federal 
power. All of the other applicants currently receive over 20 percent of 
their energy requirements from Federal allocations. Therefore, WAPA 
awarded 10 percent of the Olmsted generation to the four applicants 
receiving less than 10 percent of their energy from Federal sources. 
The following table shows the final allocation percentages of the 
annual energy production of Olmsted:

------------------------------------------------------------------------
                         Applicant                            Percentage
------------------------------------------------------------------------
Central Utah Water Conservancy District....................           30
Utah Municipal Power Agency................................           30
Lehi City, Utah............................................           10
Kaysville City, Utah.......................................           10
Weber Basin Water Conservancy District.....................           10
Springville City, Utah.....................................           10
------------------------------------------------------------------------

    With the exception of UMPA, all of the recipients receive 
scheduling and delivery services for their allocations of Federal power 
from Utah Associated Municipal Power Systems (UAMPS) under SLCA/IP 
Contract No. 87-SLC-0037. Since Olmsted energy will be delivered by 
means of transmission and scheduling arrangements existing for Contract 
No. 87-SLC-0037 with UAMPS, the allocations to these recipients may be 
handled in a similar manner. WAPA plans to enter into contracts with 
customers after publication of this Federal Register notice.

Availability of Information

    Documents developed or retained by WAPA during this public process 
will be available, by appointment, for inspection and copying at the 
CRSP Management Center, 299 South Main Street, Suite 200, Salt Lake 
City, Utah. The comments received during the 30-day comment period have 
been posted to WAPA's website at the following address: https://
www.wapa.gov/regions/

[[Page 45124]]

CRSP/PowerMarketing/Pages/power-marketing.aspx.

Procedural Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969 (42 U.S.C. 4321-4347), the Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508), and DOE NEPA Regulations (10 CFR 
part 1021), WAPA issued a Finding of No Significant Impact (FONSI) on 
January 13, 2017. The FONSI and other NEPA compliance documentation may 
be found at https://www.wapa.gov/regions/CRSP/environment/Pages/environment.aspx.

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601, et 
seq., requires a Federal agency to perform a regulatory flexibility 
analysis whenever the agency is required by law to publish a general 
notice of proposed rulemaking for any proposed rule unless the agency 
can certify that the rule will not have a significant economic impact 
on a substantial number of small entities. In defining the term 
``rule,'' the RFA specifies that a ``rule'' does not include ``a rule 
of particular applicability relating to rates [and] services . . . or 
to valuations, costs or accounting, or practices relating to such rates 
[and] services. . . .'' 5 U.S.C. 601. WAPA has determined that this 
action relates to rates or services offered by WAPA and, therefore, is 
not a rule within the purview of the RFA.

Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this Federal 
Register notice by the Office of Management and Budget is required.

    Dated: August 24, 2018.
Mark A. Gabriel,
Administrator.
[FR Doc. 2018-19211 Filed 9-4-18; 8:45 am]
 BILLING CODE 6450-01-P