Notice of Final 2025 Provo River Project Marketing Plan and Call for 2025 Resource Pool Applications, 16433-16439 [2023-05486]

Agencies

• DEPARTMENT OF ENERGY
• Western Area Power Administration

[Federal Register Volume 88, Number 52 (Friday, March 17, 2023)]
[Notices]
[Pages 16433-16439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05486]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Notice of Final 2025 Provo River Project Marketing Plan and Call 
for 2025 Resource Pool Applications

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Final 2025 Provo River Project Marketing Plan and 
Call for 2025 Resource Pool Applications.

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SUMMARY: Western Area Power Administration (WAPA), a federal Power 
Marketing Administration of the Department of Energy (DOE), Colorado 
River Storage Project (CRSP) Management Center (MC) announces its Final 
2025 Provo River Project Marketing Plan (Marketing Plan) and Call for 
2025 Resource Pool Applications (Call for Applications) for an 
allocation of federal energy from the Provo River Project (PRP). On

[[Page 16434]]

September 30, 2024, all existing PRP energy sales contracts (Contracts) 
will expire. This notice responds to comments received on the Proposed 
2025 Provo River Project Marketing Plan (Proposed Plan) published in 
the Federal Register June 1, 2022, and sets forth the Marketing Plan. 
The Marketing Plan specifies the terms and conditions under which WAPA 
will market energy from the PRP beginning October 1, 2024, through 
September 30, 2054. This Marketing Plan supersedes the previous PRP 
marketing plan. WAPA will offer new Contracts for the sale of energy to 
existing customers (Customers). The Marketing Plan also establishes one 
resource pool (2025 Resource Pool) of up to 3 percent of the net 
marketable resource under contract at the time of reallocation to be 
available for eligible new preference entities. Eligible preference 
entities who wish to apply for a new allocation from the PRP must 
submit a formal application using the Applicant Profile Data (APD) 
application form and satisfy the criteria as described in this Federal 
Register notice.

DATES: The Marketing Plan will become applicable April 17, 2023. The 
Call for Applications will begin on that same date. WAPA must receive a 
completed and signed application using the APD form by 4:00 p.m., MDT, 
on June 15, 2023 to be assured of consideration by WAPA.

ADDRESSES: Preference entities interested in applying for an allocation 
may submit a completed hard copy APD application form with a wet 
signature to: Mr. Rodney G. Bailey, CRSP Manager, CRSP MC, Western Area 
Power Administration, 1800 South Rio Grande Avenue, Montrose, CO 81401. 
APD application forms with an e-signature may be emailed to [email protected]. All APD forms must be received by WAPA within the 
time required in the DATES Section, herein.

FOR FURTHER INFORMATION CONTACT: Mr. Randolph Manion, CRSP Contracts 
and Energy Services Manager, [email protected], 720-201-3285, or fax at 
970-240-6282. Written requests for information should be mailed to the 
CRSP MC in the ADDRESSES section, herein. Information on development of 
the Marketing Plan and ADP application form can be found at https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/2025-provo-power-marketing-plan.aspx.

SUPPLEMENTARY INFORMATION:

Background

    WAPA is responsible for marketing power from the PRP, which is done 
independently from the other projects marketed by WAPA's CRSP, 
including the Salt Lake City Area Integrated Projects (SLCA/IP), 
Olmsted Project, and the Falcon-Amistad Project. In addition to 
marketing power from the PRP and other projects, WAPA's CRSP operates 
approximately 2,316 miles of transmission lines and associated 
infrastructure related to these federal hydroelectric projects across 
Arizona, New Mexico, Colorado, Utah, and Wyoming.
    The PRP is a small water development project, with a powerplant, in 
northern Utah. It was authorized by President Franklin D. Roosevelt, in 
part, as a response to the Great Depression and a severe drought that 
devasted Utah's agriculture and threatened municipal water supplies in 
the 1930s. PRP's primary function is to provide water for irrigation, 
municipal, and industrial purposes in Salt Lake and Utah Counties, 
Utah. The Department of the Interior, Bureau of Reclamation 
(Reclamation) finished construction of the Deer Creek Dam in 1938 and 
the Deer Creek Powerplant in 1958, which included two 2.475-megawatt 
generators. On June 27, 1936, Reclamation signed contract number Ilr-
874 making the Provo River Water Users' Association (PRWUA) the 
operator of the dam and responsible for repayment of the PRP. The 
initial investment in the power facilities was repaid in 1984 but there 
are ongoing costs associated with operation, maintenance, and 
replacement (OM&R) of equipment.
    Between October 15 and April 15, water may be diverted from the 
adjacent Weber River Basin into the Provo River and stored in Deer 
Creek Reservoir for irrigation purposes pursuant to the terms of the 
1938 contract number Ilr-1082 between the PRWUA, PacifiCorp (formerly 
Utah Power and Light Company), and Reclamation, among others. This 
winter season diversion creates a loss of hydropower generation at the 
Weber Powerplant on the Weber River, downstream from the diversion. As 
a result, PacifiCorp, the owner of the Weber Powerplant, is reimbursed 
for its energy losses caused by the diversion with PRP energy (Weber/
Provo Water Exchange). During this winter period, PRP generation above 
the reimbursement amount for the Weber/Provo Water Exchange is marketed 
by WAPA to PRP allottees as surplus energy. During the summer period, 
the total available PRP generation is marketed by WAPA to PRP 
allottees.
    The Marketing Plan, herein, describes how CRSP Management Center 
will market federal energy from the PRP beginning October 1, 2024, 
through September 30, 2054. As part of the Marketing Plan, WAPA will 
establish one 2025 Resource Pool of 3 percent of the net marketable 
resource currently under contract to be available for eligible new 
preference entities and Customers. The 2025 Resource Pool will be 
allocated and under contract by October 1, 2024. WAPA, at its 
discretion, will allocate a percentage of the 2025 Resource Pool to 
selected applicant(s) that meet the Eligibility Criteria defined in the 
Marketing Plan, herein. This allocation percentage will be multiplied 
by the 2025 Resource Pool percentage to determine the applicant's 
percentage of the resource pool. WAPA will publish a notice in the 
Federal Register once those proposed allocations have been determined 
(Proposed Allocations). The public will have an opportunity to comment 
on the Proposed Allocations. After reviewing the comments, WAPA will 
publish a notice of Proposed Allocations in the Federal Register. Once 
the final 2025 Resource Pool allocations have been published, WAPA will 
work with Customers and any new allottees to prepare and execute new 
Contracts pursuant to the General Contract Principles as described in 
this notice.

Response to Comments on the Proposed 2025 Provo River Project Marketing 
Plan

    During the public consultation and comment period, WAPA received 
three letters and one email commenting on the Proposed Plan. In 
addition, WAPA received one comment during the June 28, 2022, Public 
Comment Forum. In preparing the Marketing Plan, WAPA reviewed and 
considered all comments received during the public consultation and 
comment period. The following is a summary of the comments received 
during the consultation and comment period, and WAPA's responses to 
those comments. Comments are grouped by subject and paraphrased for 
brevity when it was possible to do so without affecting the meaning of 
the statements.

A. Marketing Area Responses

    Comment: One commenter stated they support the marketing area of 
the two counties of Utah and Wasatch in the State of Utah.
    Response: Thank you for this comment.

[[Page 16435]]

B. Resource Extensions and Resource Pool Allocations Responses

    Comment: One commenter stated they support WAPA's proposal to 
provide 95 percent of PRP's available energy to existing Customers 
ensuring rights to a 2025 marketing allocation.
    Response: WAPA appreciates this comment. WAPA plans to reduce the 
proposed 5 percent Resource Pool to 3 percent, consistent with other 
WAPA Region's marketing plans.
    Comment: One commenter stated the PRP should be renewed and 
continued at the same allocation percentages--and if new customers are 
to be added, they suggest WAPA look no further than within the current 
entities for these new customers. Furthermore, the current entities 
have experienced significant load growth, some a 10-fold increase since 
1995. If allocations are reduced to current entities, this would be 
contrary to their needs.
    Response: Thank you for this comment. WAPA appreciates the concern 
with the reduction in current allocations. In response, WAPA is 
limiting the Resource Pool to a total of 3 percent. However, a Resource 
Pool is required to ensure consistency with the wide-spread use policy 
to allow new applicants opportunity to receive an allocation.
    Comment: One commenter asked if the entities receiving a percentage 
of PRP are paying customers or do they just get the energy for free?
    Response: Customers have an obligation to pay all the allocable 
annual PRP powerplant expenses including an amount to assist the Provo 
River Water Users' Association repayment to the United States original 
investment in the PRP. In return, the Customers and any new allottees 
will receive the marketable energy of the PRP.

C. Preference Entities Responses

    Comment: No comments received.
    Response: No responses provided.

D. Ready, Willing, and Able Responses

    Comment: One commenter stated they support the marketing criteria 
in the Proposed Plan; and as a preference entity serving the electrical 
needs of six municipalities, they stand ready, willing, and able to 
receive the power and energy from the PRP resource to meet continued 
electricity load growth for their six member cities. They are prepared 
to accept a new allocation under the terms and conditions of the 
contract.
    Response: Thank you for this comment.

E. Eligible Applicants Responses

    Comment: One commenter stated if new allocations are to be given, 
they should be the Customers with significant load growth.
    Response: Existing Customers will have an opportunity to apply for 
a percentage of the Resource Pool.

F. Contract Obligations Responses

    Comment: No comments received.
    Response: No responses provided.

G. Separate Contractual Arrangements With PacifiCorp Responses

    Comment: No comments received.
    Response: No response provided.

H. Contract Term Responses

    Comment: One commenter requested a longer contract term. They 
believed this will be helpful for planning for the future.
    Response: WAPA appreciates this comment and agrees a longer 
contract term will be more effective and efficient for everyone. WAPA 
is lengthening the contract term to a fixed 30-year period.

I. Delivery Point Responses

    Comment: No comments received.
    Response: No responses provided.

J. Transmission Beyond Delivery Point Responses

    Comment: No comments received
    Response: No responses provided.

K. Regional Transmission Organization Responses

    Comment: One commenter stated there is troubling language in 
Section K of the Proposed Plan regarding regional transmission.
    Response: Thank you for this comment. WAPA cannot foresee all 
possible impacts due to PacifiCorp joining organized electricity 
markets, such as a regional transmission organization. The language in 
Section K attempts to strike a balance between unknown impacts and 
WAPA's ability to address potential transmission impacts beyond the PRP 
delivery point.

L. Rates and Payment Responses

    Comment: No comments received.
    Response: No responses provided.

M. General Comments Responses

    Comment: One commenter stated the Summary Section of the Proposed 
Plan provides the current PRP Marketing Plan expires September 30, 
2024. The Marketing plan completed its purpose when power from Deer 
Creek was allocated. The present contracts for the sale of that power 
terminate September 30, 2024.
    Response: Thank you for this comment.
    Comment: One commenter stated they value their long-standing 
working relationship with WAPA in managing the PRP facilities and 
WAPA's efforts to solve challenges associated with drought and meeting 
the growth for energy in the West.
    Response: Thank you for this comment.
    Comment: One commenter asked if Customers receive a fixed amount of 
energy or an allocation?
    Response: Customers will receive a percentage of the total PRP 
marketable energy as an allocation.
    Comment: One commenter noted the Proposed Plan stated the PRP 
generation is sold to CRSP in the summer Season while it is, of course, 
sold to customers.
    Response: WAPA concurs with this comment and corrected the language 
in the Marketing Plan.
    Comment: One commenter stated the Proposed Plan referenced water 
diverted for irrigation purposes should also emphasize Municipal and 
Industrial purposes.
    Response: WAPA concurs with this statement and highlighted this 
point in the Marketing Plan.
    Comment: One commenter stated the Proposed Plan provides, in part, 
that ``applicants. . . . Will receive a percentage of available annual 
winter. . .generation. . .''. However, the Proposed Plan provides that 
``During this winter period, PRP generation above the reimbursement 
amount is sold to WAPA's CRSP as non-firm surplus energy.''
    Response: Thank you for this comment. WAPA corrected this statement 
in the Marketing Plan to ``During this winter period, PRP generation 
above the reimbursement amount is marketed by WAPA to PRP allottees as 
surplus energy.''

Summary of Major Revisions to the Marketing Plan

    WAPA revised the Marketing Plan, in part, to address comments 
received during the public consultation and comment period. The 
revisions are summarized as follows:
     Marketing Plan Section B: Resource Extension and Resource 
Pool changed from 5 percent to 3 percent; and additional clarifying 
language added to this section.
     Marketing Plan Section F: Contract Obligations clarifying 
language added including the addition of language pertaining to 
decreasing or increasing a Customer's allocation upon 180 days' notice; 
and new language allowing Net Billing and Bill Crediting.

[[Page 16436]]

     Marketing Plan Section H: Contract Term changed from a 10-
year term with two automatic 5-year renewals to a fixed 30-year term, 
October 1, 2024, through September 30, 2054.
     Marketing Plan Section K: Regional Transmission 
Organization and other organized market activities sentence added ``. . 
.with the understanding that WAPA holds the unilateral right to 
ultimately agree or not agree to what those potential mitigation 
efforts might be and each Customer is ultimately responsible for all 
transmission costs associated with their allocation. . .''
     Marketing Plan added three new sections:

[cir] The addition of Section I: Acronyms and Definitions
[cir] Added Section III: Changes Due to Drought
[cir] Added Section IV: Call for 2025 Resource Pool Applications for 
Power

2025 Provo River Project Marketing Plan and Marketing Criteria

    The Marketing Plan addresses: (1) The available PRP energy to be 
marketed after September 30, 2024, which is the termination date for 
all existing PRP Contracts; (2) the general terms and conditions under 
which the energy will be marketed October 1, 2024, through September 
30, 2054, to Customers and new allottee(s); and (3) the criteria to 
determine who will be eligible to receive allocations from the 2025 
Resource Pool.
    WAPA will continue a collaborative process with Customers and new 
allotees in implementing the terms set forth in the Marketing Plan.
    Within broad statutory guidelines, WAPA has discretion as to whom 
and under what terms it will contract for the sale of federal power, as 
long as preference is accorded to statutorily defined public bodies. 
WAPA markets power in a manner that will encourage the most widespread 
use at the lowest possible rates consistent with sound business 
principles. All products and services provided under the Marketing Plan 
will be subject to the operational requirements and constraints of the 
PRP, transmission availability, and federal authorities.

I. Acronyms and Definitions

    As used herein, the following acronyms and terms, whether singular 
or plural, capitalized or not capitalized, shall have the following 
meanings:
    Allocation: An offer from WAPA to sell federal energy for a certain 
period of time, which will convert to a right to purchase after 
execution of a contract.
    Allocation Criteria: Criteria used to determine the amount of 
energy allocated to allottees.
    Allottee: A preference entity receiving an allocation.
    Base Resource: A percentage of the annual net marketable energy 
output of the PRP rather than fixed quantities of energy as determined 
by WAPA to be available for marketing after meeting any adjustments for 
operation and maintenance power requirements. The annual energy output 
is comprised of the available PRP generation from April through 
September; surplus energy available from October through April, which 
is PRP generation above the reimbursement amount for the Weber/Provo 
Water Exchange.
    Bill Crediting: Contractual provisions whereby payments due to WAPA 
by a Customer shall be paid by a Customer to a third party when so 
directed by WAPA.
    CRSP: Colorado River Storage Project is a DOI project designed to 
oversee the development of the water resources of the Upper Colorado 
River Basin. The project provides hydroelectric power, flood control 
and water storage for participating states along the upper portion of 
the Colorado River and its major tributaries.
    Contract Principles: Provisions of the Contracts, including WAPA's 
General Power Contract Provisions.
    CRSP Management Center: Is one of five regional offices within WAPA 
responsible for marketing power from federal hydrogeneration 
facilities.
    Customer: An entity with a contract and receiving electric service 
from the PRP.
    Electric Utility Status: Means that a Preference entity that has 
responsibility to meet load growth, has a distribution system, and is 
ready, willing, and able to purchase federal power from WAPA on a 
wholesale basis.
    Eligibility Criteria: Conditions that must be met to qualify for an 
allocation.
    Energy: Measured in terms of the work it can do over a period of 
time; electric energy is usually measured in kilowatt-hours (KWh) or 
megawatt-hours (MWh).
    GPCP: General Power Contract Provisions. Standard terms and 
conditions included in WAPA's Contracts.
    Integrated Resource Plan (IRP): A process and framework within 
which the costs and benefits of both demand and supply-side resources 
are evaluated to develop the least total cost mix of utility resource 
options.
    Kilowatt (kW): A unit measuring the rate of production of 
electricity; 1 kilowatt equals 1,000 watts.
    Marketing Area: The counties of Utah and Wasatch, within and to the 
exterior of these county boundaries as established through an 
administrative or political subdivision of a state Utah.
    Marketing Plan: WAPA's final 2025 Power Marketing Plan for the PRP.
    Megawatt (MW): A unit measuring the rate of production of 
electricity; 1 megawatt equals 1 million watts.
    Net Billing: Payments due to WAPA by a customer may be offset 
against payments due to that customer by WAPA.
    Power: Capacity and energy.
    Preference: The requirements of Reclamation Law that provide for 
preference in the sale of federal power be given to certain entities 
such as governments (state, federal and Native American), 
municipalities and other corporations or agencies, and cooperatives and 
other nonprofit organizations financed in whole or in part by loans 
made pursuant to the Rural Electrification Act of 1936 (See, e.g., 
Reclamation Project Act of 1939, Section 9(c), 43 U.S.C. 485h(c)). A 
Native American applicant must be an ``Indian Tribe'' as that term is 
defined in section 4 of the Indian Self Determination and Education 
Assistance Act, as amended (25 U.S.C. 5304(e)).
    Provo River Project (PRP): The Department of the Interior, Bureau 
of Reclamation (Reclamation) constructed Deer Creek Dam (1938) and the 
Deer Creek Powerplant (1958), which included two 2.475-megawatt 
generators. On June 27, 1936, Reclamation signed contract number Ilr-
874 making the PRWUA the operator of the dam and responsible for 
repayment of the PRP.
    Reclamation Law: Refers to a series of federal laws with a lineage 
dating back to the late 1800s. Viewed as a whole, those laws create the 
framework under which WAPA markets power.
    2025 Resource Pool: A pool of energy created from available net 
marketable PRP power resources allocated to Customers.
    WAPA: Western Area Power Administration, United States Department 
of Energy, a federal Power Marketing Administration responsible for 
marketing and transmitting federal power pursuant to Reclamation Law 
and DOE Organization Act (42 U.S.C. 7101, et seq.).

II. Provo River Project Marketing Plan, General Criteria and Contract 
Principles

    The following criteria and contract principles apply to all 
Contracts executed under the Marketing Plan:

[[Page 16437]]

A. Marketing Area

    As defined in Section I., herein, the Marketing Area includes the 
counties of Utah and Wasatch, within and to the exterior of these 
county boundaries as established through an administrative or political 
subdivision of a state Utah.

B. Resource Extensions and 2025 Resource Pool Allocations

    WAPA will provide 97 percent of the net marketable PRP resources to 
existing customers and establish a resource pool with the remaining 
energy resources for new allocations.
1. Extension for Existing Customers
    Starting October 1, 2024, existing Customers will have the right to 
purchase 97 percent of the net marketable PRP energy resources through 
September 30, 2054, under new Contracts. If existing Customer(s) 
surrender some or all of its allocation prior to October 1, 2024, that 
percentage of the total Base Resource will be returned to the remaining 
existing Customers on a pro rata basis.
2. Pool Resources and Amount
    The 2025 Resource Pool will consist of 3 percent of the net 
marketable PRP energy resources available after September 30, 2024. The 
2025 Resource Pool will be created by reducing existing Customers' 
allocations by up to 3 percent. An estimated amount of net marketable 
PRP energy resource that may be available for the Resource Pool as of 
October 1, 2024, through September 30, 2054, is estimated at 517,306 
kWh annually, an approximate figure based on the most recent 5-year net 
marketable power average of 17,243,527 kWh annually. PRP energy not 
under Contract by September 30, 2024, will be reallocated to the 
existing Customers on a pro rata basis.
3. 2025 Resource Pool Allocations
    WAPA will, at its discretion, allocate a percentage of the 2025 
Resource Pool to applicants that meet the Eligibility and Allocation 
Criteria. WAPA will take into consideration all existing federal 
hydropower allocations an applicant is currently receiving when 
determining each new 2025 Resource Pool allocation. Allocations from 
the 2025 Resource Pool will be determined through processes described 
in this Marketing Plan. The 2025 Resource Pool will be dissolved after 
September 30, 2024, the closing date for executing new 2025 Resource 
Pool Contracts.
4. 2025 Resource Pool Allocation Criteria
    The following Allocation Criteria will apply to all applicants 
seeking a 2025 Resource Pool Allocation under the Marketing Plan:
    a. Allocations will be made in amounts as determined solely by WAPA 
in the exercise of its discretion under Reclamation Law and considered 
to be in the best interest of the U.S. Government.
    b. Allocations will be determined based on all existing federal 
hydropower allocations an applicant is currently receiving and on the 
applicant's load during the calendar year prior to the Call for 
Applications or the amount requested, whichever is less.
    c. An allottee will execute an electric service contract with WAPA 
and comply with all the conditions in that contract.
    d. Eligible Native American applicants will receive consideration 
for an allocation consistent with this Marketing Plan and 25 U.S.C. 
3505.

C. Preference Entities

    As defined herein, includes Municipalities, rural electric 
cooperatives, and political subdivisions including irrigation or other 
districts, other governmental organizations, nonprofit organizations 
financed in whole or in part by loans made pursuant to the Rural 
Electrification Act of 1936, and federally recognized Native American 
tribes are all preference entities in accordance with section 9(c) of 
the Reclamation Project Act of 1939, as amended (43 U.S.C. 485h(c)). A 
Native American applicant must be an ``Indian Tribe'' as that term is 
defined in section 4 of the Indian Self Determination and Education 
Assistance Act, as amended (25 U.S.C. 5304(e)).

D. Ready, Willing, and Able

    Eligible applicants must be ready, willing, and able to receive and 
distribute or consume energy from WAPA by October 1, 2024. ``Ready, 
willing, and able'' means the applicant has the facilities needed for 
the receipt of power or has made the necessary arrangements for 
transmission and/or distribution service, and its power supply 
contracts with third parties to permit the delivery of WAPA's power.

E. Eligible Applicants

    WAPA will apply the following Eligibility Criteria to all 
applicants seeking a 2025 Resource Pool Allocation under the Marketing 
Plan:
    1. Applicants must meet the preference requirements under Section 
9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)(1)), as 
amended and supplemented.
    2. Applicants must be located within the Marketing Area.
    3. Applicants that require energy for their own use must be ready, 
willing, and able to receive and use federal energy.
    4. Applicants that provide retail electric service must be ready, 
willing, and able to receive and use the federal energy to provide 
electric service to their customers, not for resale to other utilities.
    5. Applicants must submit an application in response to the Call 
for 2025 Resource Pool Applications by the deadline for receipt by WAPA 
as specified in the DATES section, herein.
    6. Native American applicants must be a Native American tribe as 
defined in the Indian Self Determination Act of 1975 (25 U.S.C. 5304).
    7. WAPA generally will not allocate power to applicants with loads 
of less than 1 MW; however, allocations to applicants with loads of at 
least 500 kW may be considered, provided the loads can be aggregated 
with other allottees' loads to schedule and deliver to a minimum load 
of 1 MW.

F. Contract Obligations

    Eligible applicants that receive an allocation must execute 
Contracts within 6 months of receiving a contract offer from WAPA, 
unless WAPA agrees otherwise in writing. Furthermore, applicants must 
comply with all terms and conditions stated within that contract, 
including:
    1. Clauses specifying criteria to receive electric service from 
WAPA.
    2. WAPA's standard provisions, policies and procedures for 
Contracts, Integrated Resource Plans, General Power Contract 
Provisions, and creditworthiness as determined by WAPA.
    3. Clauses that allow WAPA to reduce or increase an allottee's or 
Customer's allocation percentage, upon 180 days' notice, if WAPA 
determines that (1) the allottee or Customer is not using this power to 
serve its own loads; (2) the allocation amounts are consistently 
greater than the Customer's maximum load; or (3) the Customer is 
allotted a percentage of allocation returned to WAPA from another 
Customer.
    4. Clauses concerning any energy not under Contract may be 
allocated at any time, at WAPA's sole discretion, or sold as deemed 
appropriate by WAPA, consistent with federal law.
    5. Clause providing for alternative funding arrangements, including 
Net

[[Page 16438]]

Billing, Bill Crediting, Reimbursable Financing, and advance payment.
    6. Contracts may include a clause providing for alternative funding 
arrangements, including Net Billing, Bill Crediting, Reimbursable 
Financing, and advance payment.
    7. All power supplied by WAPA will be delivered pursuant to a 
scheduling agreement negotiated between WAPA, Customers and the 
allottees. Terms and conditions are subject to WAPA's final approval.
    8. Clauses stipulating that Customers will pay for their percentage 
of the Base Resource, pursuant to the formula rate described in Section 
L, herein. Customers must pay all applicable rates and charges in the 
manner and within the time prescribed in the Contract.

G. Separate Contractual Arrangements With PacifiCorp

    Eligible applicants that receive an allocation must execute a 
separate multi-party agreement among WAPA, Reclamation, Central Utah 
Water Conservation District, PRWUA, and PacifiCorp to ensure repayment 
of energy to PacifiCorp for the loss of power generation due to the 
Weber/Provo Water Exchange.

H. Contract Term

    Contracts shall provide for WAPA to furnish electric service 
beginning October 1, 2024, through September 30, 2054.

I. Delivery Point

    PRP is electrically interconnected to PacifiCorp's 138-kilovolt 
(kV) transmission system (PacifiCorp's System). Eligible applicants 
taking delivery of power from WAPA must do so at the PacifiCorp System 
138-kV Hale Powerplant Switchyard, South Provo Tap, or Spanish Fork 
Substation.

J. Transmission Beyond Delivery Point

    Any associated transformation/transmission beyond the PacifiCorp 
System 138-kV Hale Powerplant Switchyard, South Provo Tap, or Spanish 
Fork Substation is the sole responsibility of the eligible applicants 
that receive an allocation. Eligible applicants that receive an 
allocation must have the necessary arrangements for transmission and/or 
distribution service in place by the first effective day of the 
Contract.

K. Regional Transmission Organization

    Should PacifiCorp, as the balancing authority operator where the 
PRP project is interconnected, join a full electricity market (e.g., a 
Regional Transmission Organization and/or an Independent System 
Operator), and in joining that market create unintended delivery point/
point-of-receipt financial impact to the PRP, and/or other unintended 
financial impacts, such financial impacts will be included as part of 
the PRP operation expenses. WAPA will work with the Customers and 
eligible applicants that receive an allocation in good faith in an 
attempt to minimize financial impacts with the understanding that WAPA 
holds the unilateral right to ultimately agree or not agree to what 
those potential mitigation efforts might be and each Customer is 
ultimately responsible for all transmission costs associated with their 
allocation.

L. Rates and Payment

    PRP is a ``take all, pay all'' project. This means the annual 
revenue requirement does not depend on the amount of energy available 
each year. Each eligible applicant that receives an allocation will 
receive a proportional share of the energy and will annually pay a 
proportional share of the OM&R expenses, including a separate annual 
payment to Reclamation for the PRP irrigation investments, in 12 
monthly installments. WAPA establishes the rates for the PRP through a 
separate public process. For additional information, see PRP's current 
Rate Order No. WAPA-189.

III. Changes Due to Drought

    WAPA recognizes there have been, and continue to be, significant 
impacts caused from a persisting long-term drought in the Colorado 
River Basin, and changes in the electric utility industry. To address 
this concern, WAPA, in collaboration with its Customers, will include 
the ability to make changes in how the federal resource is marketed if 
there is deemed a benefit to WAPA and its Customers. Any changes 
implemented would be done through negotiation and revision to 
individual Customer and allotee Contracts.

IV. Call for 2025 Resource Pool Applications for Power

    Through this Federal Register notice, WAPA formerly requests 
applications from qualified preference entities wishing to purchase 
power from PRP from October 1, 2024, through September 30, 2054. 
Existing Customers do not need to submit an application unless they are 
seeking to increase their allocation. All applicants must submit 
applications using the APD application form identified in the SUMMARY 
section, herein, so that WAPA has a uniform basis upon which to 
evaluate the applications. To be considered, applicants must meet the 
Eligibility Criteria contained in the Marketing Plan and must submit a 
completed APD application form by the deadline specified in the DATES 
section, herein. To ensure full consideration is given to all 
applicants, WAPA will not consider requests for power or applications 
submitted before publication of this Federal Register notice or after 
the deadline specified in the DATES section, herein.
1. Application Profile Data (APD)
    The APD application form has been approved by the Office of 
Management and Budget under Control No. 1910-5136. APD application 
forms are available upon request to the person listed in the FOR 
FURTHER INFORMATION CONTACT section, herein; or may be accessed online 
at: https://www.wapa.gov/regions/CRSP/PowerMarketing/Pages/2025-provo-power-marketing-plan.aspx. A completed hard copy APD application form 
with a wet signature may be submitted by U.S. Mail or other widely 
accepted delivery service with certified tracking to: Mr. Rodney 
Bailey, CRSP Manager, CRSP MC, Western Area Power Administration, 1800 
South Rio Grande Avenue, Montrose, CO 81401. APD application forms with 
an e-signature may be emailed to [email protected]. It is each 
applicant's responsibility to ensure it submits a timely application, 
so WAPA receives the applications before the date and time stated in 
the DATES section, herein.
    Applicants must provide all information requested on the APD 
application form, if available and applicable. Please indicate if the 
requested information is not applicable or not available. WAPA may 
request, in writing, additional information from any applicant whose 
application is deficient. The applicant will have 10 business days from 
postmark date on WAPA's request to provide the information. In the 
event an applicant fails to provide all information to WAPA, the 
application will not be considered.
    The information in the APD application form should be answered as 
if prepared by the entity/organization seeking the allocation of 
federal power. The information collected under this process will not be 
part of a system of records covered by the Privacy Act and may be 
available under the Freedom of Information Act. If you are submitting 
any confidential or business sensitive information, please mark such

[[Page 16439]]

information before submitting your application.
2. Recordkeeping Requirement
    If WAPA accepts an application and the applicant receives an 
allocation of federal energy, the applicant must keep all information 
related to the APD for a period of 3 years after signing a Contract for 
federal energy. There is no recordkeeping requirement for unsuccessful 
applicants who do not receive an allocation of federal energy.
    WAPA has obtained Office of Management and Budget Clearance Number 
1910-5136 for collection of the above information. The APD is collected 
to enable WAPA to properly perform its function of marketing limited 
amounts of federal hydropower. The data supplied will be used by WAPA 
to evaluate who will receive an allocation of federal power.
3. Contracting Process
    After WAPA has evaluated the applications, WAPA will publish a 
notice of Proposed Allocations in the Federal Register. The public will 
have an opportunity to comment on the Proposed Allocations. After 
reviewing the comments, WAPA will publish a notice of Final Allocations 
in the Federal Register. WAPA will begin the contracting process with 
the existing Customers and new allottees after publishing the final 
allocations in the Federal Register, tentatively scheduled for the fall 
of 2023. WAPA will offer a pro-forma contract for power allocated under 
the Final 2025 Resource Pool Allocations. Allottees will be required to 
execute a contract within 6 months of the Contract offer. Contracts 
will be effective upon WAPA's signature, and service will begin on 
October 1, 2024, and continue through September 30, 2054.

Authorities

    WAPA developed the Marketing Plan in accordance with its power 
marketing authorities pursuant to the following Acts of Congress: 
Reclamation Act of June 17, 1902 (Pub. L. 57-161) (32 Stat. 388), 
Reclamation Project Act of August 4, 1939 (Pub. L. 76-260) (53 Stat. 
1187), Department of Energy Organization Act of August 4, 1977 (Pub. L. 
95-91) (91 Stat. 565), Energy Policy Act of October 30, 1992 (Pub. L. 
102-575) (106 Stat. 4600, 4605), as such acts may be supplemented or 
amended.

Procedural Requirements

A. Review Under the National Environmental Policy Act (NEPA)

    WAPA has determined that this proposed action fits within the 
categorical exclusion listed in appendix B to subpart D of 10 CFR part 
1021 (B4.1 contracts, policies, and marketing and allocation plans for 
electric power). Categorically excluded projects and activities do not 
require preparation of either an environmental impact statement or an 
environmental assessment. A copy of the categorical exclusion 
determination is available on the CRSP website at: https://www.wapa.gov/regions/CRSP/environment/Pages/environment.aspx.

B. Review Under the Regulatory Flexibility Act

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

C. Review Under the Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
3501, et seq.), WAPA has received approval from the Office of 
Management and Budget for the collection of customer information in 
this rule, under control number 1910-5136.

D. Determination Under Executive Order 12866

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

Signing Authority

    This document of the Department of Energy was signed on March 2, 
2023, by Tracey A. LeBeau, Administrator, Western Area Power 
Administration, pursuant to delegated authority from the Secretary of 
Energy. That document, with the original signature and date, is 
maintained by DOE. For administrative purposes only, and in compliance 
with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on March 14, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-05486 Filed 3-16-23; 8:45 am]
BILLING CODE 6450-01-P