The Bonneville Power Administration (BPA) expects to have surplus firm power and surplus firm energy available on its system from July 1, 1983, through October 31, 1983. Sale of such power and energy will be available to utilities for use both inside and outside the Pacific Northwest. Such sales shall be subject to the Bonneville Project Act (P.L. 75-329), the Pacific Northwest Electric Power Planning and Conservation Act (P.L. 96-501), and other applicable law. Sale for use outside the Pacific Northwest shall be subject to the provisions of the Act of August 31, 1964, (P.L. 88-552). BPA expects to make such sales under Schedule SP-1, Surplus Firm Power Rate and Schedule SE-1, Surplus Firm Energy Rate. BPA expects to have up to 900 average MW of surplus firm energy available between July 1 and August 31 and up to 1200 average MW available between September 1 and October 31, 1983. BPA also has surplus firm energy available prior to July 1, 1983, as specified in its notice of August 27, 1982. Attached hereunder are two alternate sets of conditions for proposed arrangements. BPA will also consider other arrangements as proposed by interested utilities which are in accordance with applicable law. As required by Section 2 of P. L. 88-552, current drafts of proposed contracts, when available, will be provided on request. Please contact Mr. Thomas M. Noguchi at (503) 230-3579, Mr. Larry Kitchen at (503) 230-4116, or Mr. Ben Merrill at (503) 230-5808. Attachment Sincerely, Edward Lansiewicz Assistant Administrator for Conditions for Sale of Surplus Firm A. First Proposal 1) Surplus firm energy will be delivered in hourly amounts equal to the average hourly amount of energy for each month or as mutually agreed except that BPA can reduce a schedule of surplus firm energy for any reason on any hour, 7 a.m. to 10 p.m. Monday through Saturday, as late as 30 minutes prior to the hour. 2) 3) 4) 5) 6) Surplus firm power will be surplus fim energy which RPA quarantees The term of the sale is the date of execution through October 31, 1983. Sales of surplus firm energy will be at the Schedule SE-1, Surplus Fim Energy Rate (28.4 mills per kWh) while sales of surplus firm power will be at the Schedule SP-1, Surplus Fim Power Rate (28.4 mills per kWH energy; demand $4.21 per kw-mo. during December through May, $1.91 per kW-no. during June through November). Purchasers will be billed each month for the contract demand for surplus firm power and the greater of the amount of surplus fim energy delivered by RPA or the contract amount of energy with such amount reduced for (a) the amount of nonfirm energy that BPA offers and the Purchaser accepts during any hour at the standard or spill rate under Schedule NF-2, Nonfirm Energy Rate or (b) any reduction by BPA of the amounts of surplus firm energy requested by the Purchaser on any hour 7 a.m. to 10 p.m. Monday through Saturday. Either party may reduce the contract amount of surplus firm energy on 60 days' prior written notice. Federal Register / Vol. 48, No. 142 / Friday. July 22, 1983 / Notices Bonneville Power Administration [File No.: TIE-1] Intent To Develop Policy on Providing AGENCY: Bonneville Power ACTION: Notice of intent and request for recommendations. SUMMARY: The Pacific Northwest-Pacific Southwest Intertie is used to transmit electricity between the Pacific Northwest and Northern and Southern California. Use of the Interties is governed by contracts among utilities which own portions of the line or have executed contracts with one or more of the Intertie owners. BPA built a large portion of the Intertie in the Northwest, and acts for the United States (Government) with respect to Federal ownership in the Pacific Northwest portion of the Intertie, north of the Oregon/California border. BPA holds the most extensive rights to use the Intertie in the Northwest. BPA intends to establish a policy to guide its response to requests from nonFederal parties for use of its Intertie capacity, within the context of existing 33518 contractual obligations. This policy will be called BPA's Intertie Access Policy. DATE: BPA will accept recommendations for consideration in developing a proposed Intertie Access Policy Through August 19, 1983. Written recommendations should be postmarked by that date. In addition, BPA will endeavor to meet with all interested persons who may have questions concerning existing Intertie contractual commitments. To request such a meeting, interested persons should contact the BPA Area or District Manager in their locality, the office of Public Involvement, or the responsible official (listed below). ADDRESSES: Recommendation should be submitted to Ms. Donna L. Geiger. Public Involvement Manager, P.O. Box 12999, Portland, Oregon 97212. Recommendations may also be submitted orally (at any of the scheduled meetings). Responsible official: The official responsible for development of the Intertie Access Policy is James L. Jones, Deputy Power Manager. FOR FURTHER INFORMATION CONTACT: Ms. Donna L. Geiger, Public Involvement Manager, at the above address, 503-2303478. Oregon callers may use 800-4528429; callers in California, Idaho, Montana, Nevada, Utah, Washington, and Wyoming may use 800-547-6048. Information may also be obtained from: Mr. George Gwinnutt, Lower Columbia Mr. Ronald H. Wilkerson, Upper Mr. Ronald K. Rodewald, Wenatchee Mr. Richard D. Casad, Puget Sound Area Manager, West 415 First Avenue North, Room 250, Seattle, Washington 98109, 206-442-4130. Mr. Thomas Wagenhoffer. Snake River Area Manager, West 101 Poplar, Walla Walla, Washington 99362, 509525-5500, extension 701. 33516 Federal Register / Vol. 48, No. 142 / Friday. July 22, 1983 Notices Mr. Robert N. Laffel, Idaho Falls District SUPPLEMENTARY INFORMATION: Background The Pacific Northwest-Pacific Southwest Intertie consists of three high-voltage transmission lines: Two 500-kilovolt (kV) alternating current (ac) lines and one 800-kV direct current (dc) line. The ac lines extend from John Day Substation (John Day) near John Day Dam on the Columbia River to the Lugo Substation (Lugo) near Los Angeles. They are interconnected with other transmission lines at eight points. including the Malin Substation (Malin) near the Oregon/California border. Malin is the contractual ac delivery point of Northwest power delivered to California and vice versa. The ac legs of the Intertie can transmit electricity between the Northwest and Northern or Southern California, or to a limited extent between points on the line within either region. The dc line runs directly from the Celilo Converter Station near The Dalles Dam to the Sylmar Converter Station near Los Angeles. The dc line transmits power directly between the Northwest and Southern California. Power is then redistributed throughout California on the ac line. Present scheduling capability of the three Intertie lines is 4,360 megawatts (MW), 2.800 of which is on the two ac lines and 1,560 of which is on the dc line. The ac lines are being upgraded in California between Malin and Table Mountain Substation to 3,200 MW, an increase of 400 MW. BPA will utilize this 400 MW increase at the northern end of the Pacific Southwest Intertie by using the Government's additional capacity in the 500 kV Buckley-Summer Lake-Malin line. The ac lines from Malin north will remain at 2,800 MW. The dc line is being upgraded and will have a scheduling capability of 1,956 MW in 1985. Use of the Intertie is governed by contracts among utilities which built portions of the lines and among other utilities which have contracted for use of the Intertie with one or more Intertie owners. Intertie Ownership The Northwest ac portion of the Intertie is primarily owned by the Government through BPA, and by the Portland General Electric Company (PGE). Pacific Power and Light Company (PP&L), PGE, and the Government (through BPA and the Western Area Power Administration (Western)) invested in facilities at the Malin Substation. PGE constructed the 500 kV Grizzly-Malin No. 2 line and connected it to one of the Government's 500 kV lines from Grizzly Substation to John Day. Contractually, the parties exchanged rights in each other's line portion. These rights are currently in dispute and are being negotiated. Ownership south of the Malin Substation is as follows: PP&L owns a line section from Malin to Indian Spring: the Government (through Western) owns a line section from Malin to Round Mountain Substation: Pacific Gas & Electric (PG&E) owns everything else south to Midway Substation: from Midway south, Southern California Edison (SCE) owns the facilities to Lugo, which is the southern terminus. The use of ac Intertie capacity in California is controlled by separate agreements to which BPA is not a party. The State of California Department of Water Resource (DWR) has 300 MW of firm capacity and Western has 400 MW of firm capacity south of Malin. The Sacramento Municipal Utility District (SMUD) has a contract with PG&E, SCE, and San Diego Gas & Electric (SDG&E) which provides SMUD 200 MW of firm capacity south of Malin. PG&E disputes SMUD's rights. However, SMUD recently won a ruling from the Federal Energy Regulatory Commission (FERC) confirming SMUD's right to such firm Intertie capacity. PG&E, SCE, and SDG&E split the balance of the ac capacity plus any unused portion of the DWR and Western capacity based on each party's respective percentages of 50, 43, and 7. The dc Intertie was constructed by BPA and the City of Los Angeles. The Government owns the dc lines in Oregon. Ownership of the dc in California is split 50/50 public/private, and the percentages are divided among seven parties, as follows: PG&E 25.0 percent; SCE 21.5 percent; SDG&E 3.5 percent; Los Angeles (LADWP) 40.0 percent; Burbank 3.86 percent; Glendale 3.86 percent; and Pasadena 2.28 percent. Reason for Policy Development BPA and other Pacific Northwest utilities have surplus resources for a considerable period in the future. It appears that there will be more potential users of the Intertie than there is available Intertie capacity. Several utilities, resource developers, and other parties have recently asked BPA for firm or nonfirm contractual access to the Northwest portion of the intertie. BPA must view these requests in the context Contracts Now Governing Use of the Use of the Northwest Intertie is largely governed by a number of BPA contracts. BPA's Intertie Access Policy will be developed within the framework of these contracts. The contracts are explained briefly below. The Exportable Agreement. The most significant contract currently governing use of the Intertie is the Exportable Agreement, Contract No. 14-03-73155. BPA and 14 Northwest utilities are parties to this agreement. At times, the Northwest's hydroelectric/thermal system is capable of producing more energy then can be marketed in the region at any established rate and the total amount of energy available exceeds the capability of the Intertie or the available California market. At such times, the Exportable Agreement allocation provisions go into effect. Under the Exportable Agreement, BPA schedules the Government's apportionment of surplus nonfirm energy over the Intertie to entities outside the region. It has been the practice that such energy is sold under existing power sales contracts at the lowest rate specified under BPA's Wholesale Nonfirm Energy Rate Schedule, currently the NF-2 rate of 9 mills per kWh. Any other party to the Exportable Agreement may schedule its apportionment of energy that is excess to its need under section 5(b) and 5(d) of this agreement provided that such party is willing to sell at applicable BPA rates. currently the NF-2, 9 mills per kWh rate. When a party schedules its apportioned "Exportable Energy" to BPA, such party's energy is combined with all other Exportable Energy, and sold by BPA as Federal energy to California Federal Register / Vol. 48, No. 142 / Friday, July 22, 1983 / Notices utilities under BPA's existing power sales contracts at the lowest rate specified under BPA's Wholesale Nonfirm Energy Rate Schedule. The scheduling party is credited by BPA (i.e.. paid) for its "sale" of Exportable Energy to BPA at the referenced rate. As of April 1, 1983, BPA agreed to allow a party to this agreement with a priorty to schedule (under section 5(c)) all or part of its apportioned share of an Exportable Energy schedule on a bilateral basis to a specific California entity. The rate for this bilateral energy may be different than the applicable BPA nonfirm rate, and is sold by the scheduling party to such specific California entity under its own sale contract. Until January 1, 1989, the expiration date of the Exportable Agreement, when Exportable Energy is scheduled by parties over available ac and dc Intertie capacity under the Exportable Agreement, such schedules take priority over all other schedules on the Intertie except as otherwise noted below. Exceptions include: (a) Until January 1, 1986, and pursuant to the Exportable Agreement, PGE is entitled to use its annually renewed 1,100,000 MWh Intertie access priority right described in Contract No. 14-0355063 (with BPA) to absorb as much of any Exportable Energy schedule as it wishes, up to the limit of its priority right and subject to any priority sharing arrangement with PP&L. Every PGE Intertie schedule between the Northwest and Southwest counts against its priority right until such annual right is exhausted. (b) Until January 1, 1987, and pursuant to the Exportable Agreement, PP&L is entitled to use its annually renewed 270,000 MWh Intertie access priority right described in Contract No. 14-0356379 with BPA to absorb as much of any Exportable Energy schedule as it wishes, up to the limit of its priority right and subject to any priority sharing arrangement with PGE. Every PP&L Intertie schedule between the Northwest and Southwest counts against its priority right until such annual right is exhausted. (c) Until April 1, 1988, The Washington Water Power Company (WWP) may have a firm. noninterruptible schedule of 40 average MW per week (112 peak) of combined ac and dc line capacity to San Diego Gas & Electric under Contract No. 1403-79101 with BPA. This agreement was executed prior to the Exportable Agreement. (d) Until July 1. 1991. WWP may purchase up to 60 MW of BPA's energy schedules under the Exportable Agreement, as amended or replaced, and displace such purchased energy with WWP's firm schedule to Southern California Edison (SEC) under Contract No. DE-MS79-81BP90185 with BPA. When Exportable Agreement Is Not in Effect When the Exportable Agreement is not in effect; i.e., when the hydroelectric/thermal system is not spilling or in imminent danger of spilling, and when the power offered for sale does not exceed Intertie capacity or the available California market, BPA uses the Intertie as a carrier for energy from all sources. BPA provides hour-byhour access to available Intertie capacity to all Pacific Northwest, Canadian, and Pacific Southwest utilities in accordance with sales made between buyers and sellers in the market. Generally, generating utilities in the northwest United States, southwestern Canada, and the southwest United States schedule energy over the Northwestern portion of the Intertie on a relatively short-term basis over "excess capacity" that BPA determines may be available during a given hour. To the extent markets between California utilities and the following utilities exist, the following exceptions to this general rule include: (a) Until January 1, 1986, PGE may use its Intertie access priority right under Contract No. 14-03-55063 to fully utilize available Intertie capacity during a given hour for PGE's schedules, up to the limit of its priority right and subject to any priority "sharing" arrangement with PP&L. It should be noted that PGE must use any capacity of its own before it utilizes BPA's capacity on a priority basis. (b) Until January 1, 1987, PP&L may use its Intertie access priority right under Contract No. 14-03-56379 to fully utilize available Intertie capacity during a given hour for PP&L's schedules, up to the limit of its priority right, and subject to any priority sharing arrangement with PGE. (c) Until April 1, 1988, WWP has a firm, noninterruptible right to schedule energy up to 112 MW of Intertie capacity under Contract No. 14-03-79101. When such capacity is being utilized by WWP, it is not available for any other party's schedule. (d) Until July 1, 1991, WWP may schedule up to 60 MW of firm energy to SCE under Contract No. DE-MS7981BP90185. Other BPA Uses of the Intertie BPA must make firm generating capacity available, upon request, under 33517 Note: PG&E and SDG&E are not requesting or receiving any exchange capacity from BPA under these agreements BPA's scheduling of firm capacity (Contract Demand) to fulfill its capacity/energy exchange obligations to five California utilities (Burbank, Glendale. Los Angeles. Pasadena, and SCE) benefits Northwest utilities by creating an additional market and a firm energy resource. These California utilities must provide peaking replacement energy and exchange energy (firm energy resource) to BPA pursuant to the Peak/Energy Exchange Agreements. This exchange energy is often purchased from (marketed by) Northwest utilities for delivery to BPA for the account of the California utility. Non-BPA Contracts California Sales, There are a number of contractual arrangements between and among Northwest utilities and Southwest utilities to which BPA is not a party. A listing of long-term arrangements (5 years or more) involving import/export transactions is available from the BPA Public Involvement office. Such listing includes BPA and non-BPA arrangements. Compliance with National BPA will review its proposal to establish an Intertie Access Policy to determine the level of NEPA documentation that is necessary. An appropriate environmental review under the U.S. Department of Energy's NEPA guidelines is being prepared and will be integrated into the development of such policy and will be available as an |