Browse: Departments   Dates   Agencies  

DEPARTMENT OF ENERGY

Western Area Power Administration

NOTICE: NOTICES

ACTION: Power rate adjustments:

DOCUMENT ACTION: Notice of proposed procedures.

SUBJECT CATEGORY: Collections From Central Valley Project Power Contractors To Carry Out the Restoration, Improvement, and Acquisition of Environmental Habitat Provisions of the Central Valley Project Improvement Act of 1992

DATES: The consultation and comment period will begin on the date of publication of this Federal Register notice and will end December 30, 2002. Western will present a detailed explanation of the proposed procedures at a public information forum on November 20, 2002, at 10 a.m., PST. It will receive oral and written comments at a public comment forum beginning at 1 p.m., PST, on this same date. Western [[Page 65975]]
must receive all comments by the end of the comment period to ensure they are considered.

DOCUMENT SUMMARY: The Western Area Power Administration (Western) is proposing revised procedures for the assessment and collection of restoration fund payments from the Central Valley Project (CVP) Power Contractors as required by the Central Valley Project Improvement Act of 1992 (CVPIA). These proposed procedures take a different approach toward assessing Power Contractors' collections that more closely reflects Western's 2004 Power Marketing Plan. Existing procedures are linked to an older and soon to be obsolete Power Marketing Plan. The existing procedures became effective on September 3, 1998, and will remain in effect until superseded by this process.

SUMMARY: Central Valley Project, CA,

SUPPLEMENTAL INFORMATION

Section 3407 of the CVPIA (Pub. L. 102-575, Stat. 4706, 4726) establishes in the Treasury of the United States the CVP Restoration Fund (Restoration Fund) to carry out the habitat restoration, improvement, and acquisition provisions of the CVPIA. The CVPIA further requires the Secretary of the Interior to assess and collect annual mitigation and restoration payments from CVP Water and Power Contractors (Restoration Payments). The Secretary of the Interior, through the Bureau of Reclamation (Reclamation), is responsible for determining and collecting the CVP Water and Power Contractors' share of the annual Total Power Restoration Fund Payment Obligation.

Because Western markets and transmits CVP power and maintains all CVP power contracts, Western agreed to administer the assessment and collection of the Restoration Payments from CVP Power Contractors. Western executed a letter of agreement with Reclamation to establish procedures for depositing collections from CVP Power Contractors into the Restoration Fund.

Through an open and public process, the existing procedures became effective on September 3, 1998, and remain in effect until superseded (63 FR 41561, August 4, 1998). Western indicated that it would review the procedures associated with the assessment and collection of the Restoration Payments from CVP Power Contractors every 5 years or if one of the following occurs: (1) If there is a significant change to or suspension of the legislation; (2) if a material issue arises; (3) if an apparent inequity in the procedures is discovered; or (4) if any significant change occurs that affects the procedures.

Western published a new Marketing Plan (2004 Power Marketing Plan) in the Federal Register on June 25, 1999, that specifies the terms and conditions under which Western will market power from CVP and the Washoe Project beginning January 1, 2005 (64 FR 34417). Since the current methodology for the assessment and collection of Restoration Fund payments from the CVP Power Contractors is tied to the 1994 Marketing Plan (57 FR 45782, October 5, 1992) and longterm firm CVP power contracts will expire on December 31, 2004, it is necessary to change the assessment and collection of Restoration Payments from CVP Power Contractors.

Western will prorate and assess to CVP Power Contractors the annual Power Restoration Payment Obligation (PRPO), as determined by Reclamation. Western will issue each CVP Power Contractor a monthly Restoration Fund Bill reflecting its share of the PRPO. The CVP Power Contractors will pay that amount to Western. Western will transfer all amounts collected from CVP Power Contractors to Reclamation for deposit into the Restoration Fund.

The following table provides a summary comparison of the existing procedures and proposed procedures.
Table 1.Highlights of Changes for Assessing the Annual PRPO to CVP Power Contractors
Methodology element Existing procedures Proposed procedures Effective Date.............. September 3, 1998... January 1, 2005. Assessment of Prorated Based on actual Based on assigned Charges. capacity and energy Base Resource amounts delivered Percentage as by or scheduled by articulated in the Western. 2004 Power Marketing Plan. Method of Calculation....... Capacity and energy Each Power multipliers Contractor's Base multiplied by Resource Percentage actual capacity and is multiplied by energy amounts. The the PRPO to multipliers are determine their calculated using annual PRPO prior year power obligation. sales to recover
the PRPO.
Assessment Year............. June 1 through May None.
31.
Billing Year................ September through No change. August.
Exclusion of First Three First All First Preference Preference Customers. Preference Customers. Customers.
Annual Reconciliation....... None required....... Required due to Exchange Program and posted on Power Contractor's August bill.

Acronyms and Definitions

As used throughout the remainder of this notice, the following acronyms and definitions when used with initial capitalization, whether singular or plural, will have the following meanings:

2004 Power Marketing Plan: The final marketing program for the Sierra Nevada Region power after 2004 established through a public process and published in the June 25, 1999, Federal Register (64 FR 34417).

Administrator: The Administrator of the Western Area Power Administration.

Assessment Month: The service month, which is 3 months prior to the Billing Month. This term is used in the August 4, 1998, Federal Register (63 FR 41561) procedures and will become obsolete assuming this proposed procedure is finalized and approved.

Assessment Year: The period that uses the service months from June 1 through May 31 for billing CVP Power Contractors for Restoration Payments. This term is used in the August 4, 1998, Federal Register (63 FR 41561) procedures and will become obsolete assuming this proposed procedure is finalized and approved.

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 First Preference Customers, and any adjustments for maintenance, reserves,
[[Page 65976]]

transformation losses, and certain ancillary services.

Billing Month: The month CVP Power Contractors will be billed for the Restoration Payments.

Billing Year: The period, September through August, that represents the annual Restoration Fund billing cycle.

Central Valley Project (CVP): The multipurpose Federal water and power project extending from the Cascade Range in northern California to the plains along the Kern River south of the city of Bakersfield.

CVP Improvement Act of 1992 (CVPIA): Title 34 of Public Law 102 575, 106 Stat. 4706, et seq. A legislative act, enacted on October 30, 1992, that defines provisions for habitat restoration, improvement and acquisition, and other fish and wildlife restoration activities in the CVP area of California.

FOR FURTHER INFORMATION CONTACT Ms. Melinda C. Grow, Public Utilities Specialist, Rates Division, Sierra Nevada Customer Service Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, CA 956304710, telephone (916) 3534443, email grow@wapa.gov.