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7489
Federal Register
/Vol. 70, No. 29/Monday, February 14, 2005/Notices
proposed action of offeringinterconnection contract terms is to notoffer these terms. The EIS will evaluatethis
‘‘
no-action
’’
alternative. In addition,the EIS will evaluate alternatives forrouting the proposed BPA transmissionline. At this time, two potentiallyfeasible alternatives have beenidentified:
•
The Cross-County Alternative; and
•
The Medler Road Alternative (seeattached Project Area Map).Another alternative, the South of Wasco Alternative (see Project Map),was initially considered but has beeneliminated from further consideration inthe EIS due to the potential for greatervisual, airport safety, and wetlandimpacts, as well as greater cost relativeto other alternatives.
Public Participation and Identification of Environmental Issues.
 BPA is the lead Federal agency underNEPA for the EIS. BPA has establisheda minimum 30-day scoping periodduring which affected landowners,Tribes, concerned citizens, specialinterest groups, local governments, Stateand Federal agencies, and any otherinterested parties are invited tocomment on the scope of the proposedEIS. Scoping will help BPA identifypotentially significant impacts that mayresult from BPA
’
s proposed action andthe private Wind Project, and ensurethat all relevant environmental issuesrelated to BPA
’
s proposed action areaddressed in the EIS. Based on BPA
’
sexperience, potential environmentalissues for the Wind Project and BPA
’
sinterconnection facilities may includenoise created by wind turbines, visualeffects from the wind turbines andtransmission line, socioeconomicimpacts created by an influx of construction workers into a sparselypopulated area, effects on recreation(primarily hunting), impacts on culturalresources, and impacts to wildlifehabitat and populations, includingmigratory birds.When completed, the Draft EIS will becirculated for review and comment, andBPA will hold a public commentmeeting on the Draft EIS. In the FinalEIS, BPA will consider and respond tocomments received on the Draft EIS.BPA expects to publish the Final EIS inlate 2005 or early 2006. BPA
’
ssubsequent decision will bedocumented in a Record of Decision.In addition to BPA
’
s EIS process,Oregon EFSC provides opportunity forpublic participation as part of its siteevaluation process. It is expected thatrepresentatives from the Oregon Officeof Energy will hold public meetings forthe Wind Project during 2005. BPA willcoordinate with Oregon EFSC to ensurefull consideration of all public andagency comments received.
Issued in Portland, Oregon, on February 4,2005.
Stephen J. Wright,
Administrator and Chief Executive Officer.
[FR Doc. 05
–
2781 Filed 2
–
11
–
05; 8:45 am]
BILLING CODE 6450
–
01
–
P
DEPARTMENT OF ENERGYBonneville Power AdministrationPolicy for Power Supply Role for FiscalYears 2007
–
2011 (Regional Dialogue)
AGENCY
:
Bonneville PowerAdministration (BPA), Department of Energy (DOE).
ACTION
:
Notice of availability of aNational Environmental Policy Act(NEPA) Record of Decision (ROD).
SUMMARY
:
This notice announces theavailability of the NEPA ROD to adopta policy on BPA
’
s power supply role forfiscal years 2007
–
2011. This policy isintended to provide BPA
’
s customerswith greater clarity about their Federalpower supply so they can effectivelyplan for the future and make capitalinvestments in long-term electricityinfrastructure if they choose. It is alsointended to provide guidance on certainrate matters BPA expects to beaddressed in the next rate period, whileassisting the agency in fulfilling its long-term strategic goals and responsibilitiesto the region. Each policy issue has beenevaluated for environmental effects and,for those involving NEPA, those effectshave been addressed in the BusinessPlan Environmental Impact Statement(DOE/EIS
–
0183, June 1995). Thus, thisNEPA ROD is consistent with and tieredto the Business Plan EIS and theBusiness Plan ROD (August 15, 1995).This policy, which is also referred to asthe Regional Dialogue as it is the resultof a regional discussion process beginning in April 2002, is describedmore fully in a separately issuedAdministrator
’
s ROD that addresses thelegal and policy rationale supporting theadministrative decisions.
ADDRESSES
:
Copies of the followingdocuments may be obtained by callingBPA
’
s toll-free document request line,1
–
800
–
622
–
4520, or by visiting the Website at
http://www.efw.bpa.gov:
TheNEPA ROD for the Policy for PowerSupply Role for Fiscal Years 2007
–
2011;the Administrator
’
s ROD on the policy;and the Business Plan EIS and ROD.
FOR FURTHER INFORMATION
,
CONTACT
:
 Katherine S. Pierce, Bonneville PowerAdministration
—
KEC
–
4, P.O. Box 3621,Portland, Oregon 97208
–
3621; toll-freetelephone number 1
–
800
–
282
–
3713; faxnumber 503
–
230
–
5699; or e-mail
kspierce@bpa.gov.
SUPPLEMENTARY INFORMATION
:
TheBusiness Plan EIS to which this NEPAROD is tiered was prepared to supporta number of decisions including theproducts and services BPA will market,rates for BPA
’
s products and services,policy direction for BPA
’
s sale of powerproducts to customers, contract termsBPA will offer for power sales, andplans for BPA
’
s resource acquisitionsand power purchase contracts. Each of the issues in this Regional Dialoguepolicy that were found to have anyenvironmental effects were consistentwith the Market Driven Alternativeadopted in the Business Plan ROD. Forsome policy issues, NEPA was notimplicated because there were noenvironmental effects, and for otherissues, NEPA was not triggered becausethey are a continuation of the statusquo. For the remaining issues, anyenvironmental effects have already beenaddressed in the Business Plan EIS.
Issued in Portland, Oregon, on February 4,2005.
Stephen J. Wright,
Administrator and Chief Executive Officer.
[FR Doc. 05
–
2782 Filed 2
–
11
–
05; 8:45 am]
BILLING CODE 6450
–
01
–
P
DEPARTMENT OF ENERGYBonneville Power AdministrationBonneville Power Administration
’
sPolicy for Power Supply Role for FiscalYears 2007
–
2011
AGENCY
:
Bonneville PowerAdministration (BPA), Department of Energy.
ACTION
:
Notice of final policy.
SUMMARY
:
This notice announces BPA
’
sfinal policy regarding how the agencyintends to market power and distributethe costs and benefits of the FederalColumbia River Power System (FCRPS)in the Pacific Northwest for fiscal years(FY) 2007
–
2011. This policy clarifiesBPA
’
s obligation to supply power to itsregional power customers and guidesBPA in developing and establishing itsfirm power rates in the future.
ADDRESSES
:
This policy and theAdministrator
’
s record of decision(ROD) are available on BPA
’
s Web siteat
http://www.bpa.gov/power/ regionaldialogue.
Copies are alsoavailable by contacting BPA
’
s PublicInformation Center at (800) 622
–
4520.
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7490
Federal Register
/Vol. 70, No. 29/Monday, February 14, 2005/Notices
FOR FURTHER INFORMATION CONTACT
:
 Helen Goodwin, Regional Dialogueproject manager, at (503) 230
–
3129.
SUPPLEMENTARY INFORMATION
:
Table of Contents
I. Scope of Regional DialogueII. Link to FY 2007
–
2011 Strategic DirectionA. Report to the RegionB. Strategic DirectionIII. An Integrated Strategy for FY 2007
–
2011A. FY 2007
–
2011 Rights to Lowest-CostPriority Firm (PF) RateB. Tiered RatesC. Term of the Next Rate PeriodD. Service to Public Agency CustomersWith Expiring Five-Year PurchaseCommitments That Do Not ContainLowest PF Rate Guarantee through FY2011E. Service to New Public Agency Utilitiesand Annexed Investor-Owned Utility(IOU) LoadsF. Product AvailabilityG. Service to Direct Service Industries(DSIs)H. Service to New Large Single Loads(NLSL)I. Service to Residential and Small-FarmConsumers of Investor-Owned Utilities(IOUs) J. Conservation ResourcesK. Renewable ResourcesL. Controlling Costs and Consulting WithBPA
’
s StakeholdersIV. Long-Term IssuesA. Long-Term Policy: Limiting BPA
’
s Long-Term Load Service Obligation at LowestCost Rates for Pacific Northwest FirmRequirements LoadsB. Schedule for Long-Term IssueResolutionV. Environmental Analysis
I. Scope of Regional Dialogue
The Regional Dialogue process beganin April 2002 when a group of BPA
’
sPacific Northwest electric utilitycustomers submitted a
‘‘
joint customerproposal
’’
to BPA that addressed bothnear- and long-term contract and rateissues. The proposal focused on howBPA would market Federal power anddistribute the costs and benefits of theFCRPS under 20-year power salescontracts as a means to settle litigationon the Residential Exchange ProgramSettlement Agreement signed in 2000. Itwas believed that both near- and long-term issues could be resolved beforeBPA
’
s next rate period in October 2006.Since then, BPA, the Northwest Powerand Conservation Council (Council),customers, and other interested partieshave continued to work on both near-and long-term issues. Considering thedepth and complexity of these issues,BPA concluded it was not practical toresolve all issues before the start of thenext rate period.BPA
’
s current firm power rates expireat the end of FY 2006. Nearly all of BPA
’
s regional power sales contractscontinue through FY 2011. BPA believesits first priority is to resolve policyissues that likely will influence the last5 years of those contracts, the next ratecase, and decisions to be made bycustomers concerning BPA powerservice during that period.By February 2004, BPA decided toaddress the issues in two phases. Thefirst phase of the Regional Dialogueaddresses issues that must be resolvedin order to replace power rates that willexpire in September 2006. Thesedecisions will create certainty for the FY2007
–
2011 period and set the stage forthe long-term phase of the RegionalDialogue that follows. The second phasewill address issues that are critical todetermine how BPA in the longer termwill market Federal power anddistribute the costs and benefits of theFCRPS for 20 years, with the objectiveof implementing new 20-year contractswell before current power contractsexpire in FY 2011. The process andschedule for resolving these issues isincluded in section IV.B.The Council has played an active rolein helping to plan and guide BPA
’
sdevelopment of the near-term RegionalDialogue policy direction, as well as insetting the stage for developing the long-term policy direction. BPA and theCouncil agree on the overall goals of theRegional Dialogue process to determineBPA
’
s long-term role in providingpower to regional customers at thelowest cost-based rates and capturingthat role in long-term contracts and ratesas soon as possible to create a durablesolution. Underlying the RegionalDialogue
’
s focus on addressing BPA
’
slong-term power supply role is the needto assess and understand the impact the2000
–
2001 West Coast electricity crisishas had on BPA and its customers.
II. Link to FY 2007–2011 StrategicDirection
The financial impacts of the WestCoast electricity crisis of 2000
–
2001 ledmany utilities to examine their policiesand approaches to their power supply.BPA is no exception. Over the past year,BPA has invested significant time andeffort in strategic planning directlyrelated to its power supply.This re-examination of BPA
’
s missionand core values has, along withcomments and advice from the Council,customers, constituents, tribes, andother regional stakeholders, helpedinform the agency
’
s approach to theRegional Dialogue.
A. Report to the Region
In early 2003, BPA initiated a detailedexamination of the events that began in2000 that led to the significant rateincreases and deterioration of BPA
’
sfinancial condition. On April 18, 2003,BPA released a Report to the Region thatincluded lessons the agency learned,with the intention of translating thoselessons into future actions.Among a number of other lessons, thereport noted that the level of BPA
’
scosts and risks are driven heavily by theload obligations BPA assumes undercontracts with customers. Meeting thoseload obligations was a large driver of BPA
’
s cost and rate levels. The reportpointed out that the amount of risk(market volatility and uncertainty) to bemanaged in the whole region
’
s powersystem has grown substantially and thefraction of that risk that BPA can absorbhas gotten smaller. The report alsonoted that BPA must avoid the need toacquire large amounts of power on shortnotice to meet customer load demand.This policy has been developedspecifically with those lessons in mind,particularly to resolve the agency
’
scustomer load service uncertainty assoon as possible and provide customerswith the power supply clarity theyneed.
B. Strategic Direction
The Report to the Region highlightedthe need for BPA to have a clear andsteady strategy and manage to clearobjectives. In response, the agencydevoted a significant amount of time toclarifying its strategic direction.BPA
’
s strategic direction establishesthe agency
’
s most important objectivesand the actions that will help it manageto these objectives. The strategicdirection calls on BPA to advance thePacific Northwest
’
s future leadership infour core values
—
high reliability, lowrates consistent with sound businessprinciples, responsible environmentalstewardship, and clear accountability tothe region.It should come as no surprise that thesubjects covered in the RegionalDialogue are well represented in theagency
’
s strategic direction, particularlywith regard to BPA
’
s role as a low-costprovider and the need for clear regionalaccountability. The strategic directionguiding this policy includes:1. Regional InfrastructureDevelopment: BPA policies encourageregional actions that ensure adequate,efficient, and reliable transmission andpower service.2. Conservation and Renewables:Development of all cost-effective energyefficiency in the loads BPA serves,facilitation of regional renewableresources, and adoption of cost-effectivenonconstruction alternatives totransmission expansion.
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7491
Federal Register
/Vol. 70, No. 29/Monday, February 14, 2005/Notices
3. Benefits to Residential and Small-Farm Consumers of Investor-OwnedUtilities (IOUs): The post-2011 benefitthat BPA provides to IOUs for theirresidential and small-farm consumers isequitable based on the Northwest PowerAct.4. Rates: BPA
’
s lowest firm powerrates to public preference customersreflect the cost of the undiluted FederalBase System (FBS), are below market forcomparable products, and are kept lowthrough achievement of BPA
’
sobjectives at the lowest practical cost.5. Service to Direct-Service IndustrialCustomers (DSIs): Explore a post-2006DSI service option with a known andcapped value.6. Regional Stakeholder Satisfaction:Customer, constituent, and tribalsatisfaction, trust, and confidence meettargeted levels.7. Management: Collaborativecustomer/constituent/tribalrelationships are supported bymanaging to clear long-term objectiveswith reliable results.8. Cost Recovery: Consistent costrecovery over time.9. Ratepayer and Taxpayer Interests:FCRPS assets are managed to protectratepayer and taxpayer interests for thelong term.10. Best Practices: Best practices (withemphasis on cost performance andsimplicity) are obtained in key systemsand processes.11. Risk: Risks are managed withinacceptable bounds.Additional principles guiding theRegional Dialogue are:12. Legal Criteria: Approaches orpolicy options should not requirelegislative change and should minimizelegal risk.13. Treasury Payment: BPA will planto achieve and maintain a Treasurypayment probability (TPP) that is theequivalent of a 95 percent probabilityfor a 2-year period and an 88 percentprobability for a 5-year period. Optionsfor achieving this goal include, but arenot limited to, cost recovery adjustmentclauses (CRACs) and planned netrevenue for risk.
III. An Integrated Strategy for FY 2007
–
2011
BPA
’
s policy decisions on each of theissues raised in its July proposal aregiven below. The reasoning behind eachdecision, including how BPA addressedpublic comment in making the decision,is contained in the record of decision(ROD). Where decisions are required to be made in a rate case, the policiesarticulated here will guide BPA
’
s initialrate case proposal.
A. FY 2007 
– 
2011 Rights to Lowest-Cost Priority Firm (PF) Rate
BPA will apply the lowest-cost PFrates to its public agency customerswhose contracts contain the lowest-costPF rate guarantee throughout theremaining term of the Subscriptionpower sales contracts.
B. Tiered Rates
BPA will exclude a tiered PF rateproposal applicable to firm power loadrequirements sales to public agencycustomers from its FY 2007 initial ratecase proposal. Tiered rates will beconsidered as part of an integrated long-term contract and rate solution that willimplement the long-term RegionalDialogue policy of limiting BPA sales of firm power to its Pacific Northwestcustomers
’
firm requirements loads atits lowest-cost rates to approximatelythe firm capability of the existingFederal system.
C. Term of the Next Rate Period 
BPA will limit the duration of thenext rate period to three years, from FY2007 through FY 2009. This will allowBPA to set rates lower than would beneeded for a five-year rate period, allelse being equal. In addition, a shorterrate period reduces the need for rateadjustment mechanisms such as thecurrent CRACs. BPA plans to conduct aseparate rate case to ensure new ratesare in place when new contracts takeaffect. Depending on decisions yet-to-bemade, this could result in BPA offeringtwo sets of rates through FY 2011 (onefor Subscription contract holders andone for Regional Dialogue contractholders). An additional rate period of 2years will run from FY 2010 through FY2011.
D. Service to Public Agency CustomersWith Expiring Five-Year PurchaseCommitments That Do Not ContainLowest PF Rate Guarantee through FY 2011
BPA will offer all of its public agencycustomers whose contracts expire onSeptember 30, 2006, and do not containa guarantee of the lowest cost-based PFrates beyond FY 2006 either anamendment to extend the term of theirexisting contracts through September30, 2011, or a new contract reflecting aproduct listed in Section III.F., below,that will expire on September 30, 2011.The customers
’
net requirements will becalculated consistent with their existingcontract or prior to execution of a newcontract consistent with section 5(b)(1)of the Northwest Power Act and BPA
’
sSection 5(b)/9(c) Policy. As part of acontract amendment or new contractoffer, BPA also will offer language thatguarantees the lowest cost-based PFrates (except for New Large Single Loads(NLSL)) through FY 2011.BPA will offer all of its public agencycustomers whose contracts expire onSeptember 30, 2011, and contain eithera 5-year PF off-ramp or on-ramp optionthat expires on September 30, 2006, anamendment to cancel their respectivePF off-ramp options early or exerciseon-ramp options early. The offer alsowill include language that guaranteesthe lowest cost-based PF rates (exceptNLSL) through FY 2011. The customers
’
 net requirements will be calculatedconsistent with their existing contracts.Public agency customers with eitherthe expiring 5-year contracts or theexpiring 5-year ramp options will havea 60-to-90-day period, specified by BPA,in which to accept BPA
’
s offer. The offerwill expire no later than June 30, 2005.Public agency customers that do notaccept BPA
’
s offer during the prescribedtime frame will not be eligible to receivethe lowest cost-based PF rates guaranteeand will be subject to a TargetedAdjustment Charge (TAC) or itssuccessor, as appropriate, beginning inFY 2007.BPA had proposed to recalculate thenet requirements of customers withexpiring 5-year contracts or rampoptions and limit sales at the lowest-cost rate to their recalculated netrequirements. All but one of suchcustomers have full or partialrequirements contracts whichautomatically limit their lowest-costservice to their actual net requirements.The remaining customer has a contractwhich, upon review, does not allowBPA to recalculate its net requirementsand limit its lowest-cost rate deliveriesto the recalculated amount. BPA
’
sstrong view is that limiting customers tothe amount of lowest-cost power theyactually need to meet their netrequirements is most consistent withBPA
’
s broader decision to limit its totalsales at its lowest-cost rates. However,BPA has decided not to limit thiscustomer to its recalculated netrequirements because this is notconsistent with the existing contractwith that customer.
E. Service to New Public Agency Utilities and Annexed Investor-Owned Utility (IOU) LoadsNew Public Agency Utilities:
To beeligible to purchase firm power at thelowest-cost PF rates during the FY2007
–
2009 period, an entity that formsa new public agency utility must requestservice under section 5(b)(1) of theNorthwest Power Act, meet BPA
’
sStandards for Service, and execute apower sales contract with BPA prior to
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