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Parker-Davis Project Post-2008 Resource Pool

Parker-Davis Project Post-2008 Resource Pool. Proposed Allocations Public Information Forum. Purpose. Parker-Davis Project Marketing Plan What is the P-DP Marketing Plan? P-DP Marketing Plan Elements Proposed Allocations FRN (71 FR 40503) Issued July 17, 2006 Allocation Methodology

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Parker-Davis Project Post-2008 Resource Pool

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  1. Parker-Davis Project Post-2008 Resource Pool Proposed Allocations Public Information Forum

  2. Purpose • Parker-Davis Project Marketing Plan • What is the P-DP Marketing Plan? • P-DP Marketing Plan Elements • Proposed Allocations • FRN (71 FR 40503) Issued July 17, 2006 • Allocation Methodology • Next Steps • Contacts

  3. Parker-Davis Project Marketing Plan Post-2008 Resource Pool 3

  4. What is the P-DP Marketing Plan? • The P-DP Marketing Plan for the Post-2008 Resource Pool Allocations consists of the 1987 Marketing Plan, EPAMP, and specific changes to the 1987 Marketing Plan adopted in the Federal Register Notices published during the P-DP Post-2008 Marketing process. • The P-DP Marketing Plan specifies the product marketed, eligibility criteria, allocation criteria and contract principles. • The P-DP Marketing Plan is the basis for allocating power from the Resource Pool

  5. 1987 P-DP Marketing Plan • 1987 Marketing Plan Is Defined By: • Conformed General Consolidated Power Marketing Criteria (49 FR 50582, dated December 28, 1984) • Proposed Allocation Criteria and Allocations (52 FR 7014, dated March 6, 1987) • Final Allocation Criteria and Allocations (52 FR 28333, dated July 29, 1987)

  6. Prior Parker-Davis Project Post-2008 Marketing Decisions • Application of EPAMP PMI & extension of existing contracts (68 FR 23709) • Creation of Resource Pool (68 FR 23709) • Proposed procedures and call for applications (69 FR 58900) • Final allocation procedures (70 FR 74805)

  7. Application of EPAMP and Extension of Existing Contracts • Federal Register notice published May 5, 2003, announced final decision to apply the EPAMP PMI to the P-DP (68 FR 23709). • The 1987 Marketing Plan is retained by application of EPAMP PMI except as it has been expressly modified. • The major portion of the existing contracts were extended for a 20-year period through September 30, 2028.

  8. Creation of Resource Pool • Federal Register notice published May 5, 2003, announced final decision to use 7% of the marketable resource for creation of a Resource Pool (68 FR 23709) • Resulted in a Resource Pool of approximately 17 MW summer season capacity and 13 MW winter season capacity, for allocation to eligible preference contractors for 20 years beginning October 1, 2008.

  9. Proposed Procedures and Call For Applications • Federal Register notice published October 1, 2004, (69 FR 58900) proposed procedures for allocating power from the Resource Pool and called for applications for allocations of power from the Resource Pool to be submitted on or before December 30, 2004. • The period for submitting applications was extended to January 30, 2005 by Federal Register notice published December 30, 2004 (69 FR 78408)

  10. Final Allocation Procedures • Federal Register notice published December 16, 2005, (70 FR 74805) finalized procedures for allocating power from the Resource Pool. These procedures included: • Eligibility Criteria • Allocation Criteria • General Contract Principles

  11. Elements of the P-DP Marketing Plan for Post-2008 Resource Pool Allocations • Power Marketed • Marketing Area • Eligibility Criteria • Allocation Criteria • General Contract Principles

  12. Power Marketed • P-DP power that is surplus to the power reserved for the Unites States priority uses is marketed to federal preference entities. Priority uses are Reclamation Project Use and Indian irrigation pumping adjacent to the Lower Colorado River. • P-DP power is a bundled firm electric service product, including firm capacity, energy, and transmission (on P-DP system) service.

  13. Power Marketed (cont.) • A Resource Pool of 17 MW of summer capacity and 13 MW of winter capacity was created. This includes 0.869 MW of summer withdrawable capacity and 0.619 MW of winter withdrawable capacity. • There are summer season and winter season capacities with a maximum energy available to the contractor of 3,441 kWh/kW of summer capacity and 1,703 kWh/kW of winter capacity.

  14. P-DP Marketing Area

  15. Eligibility Criteria • First consideration will be given to entities who do not have a power resource contract with Western or are not a member of a parent entity that has a contract with Western (EPAMP) • Qualified applicants, except Native American tribes, must be ready, willing, and able to receive and distribute or use power from Western.

  16. Eligibility Criteria (Cont.) • Qualified applicants (including cooperatives, public utility districts, public power districts and municipalities) that desire to purchase power from Western for resale to consumers must have electrical utility status by April 1, 2006. • For the P-DP, Western will consider making allocation to municipal utilities, other than electrical utilities, that are recognized as utilities by their applicable legal authorities, are nonprofit in nature, have electrical facilities, and are independently governed and financed.

  17. General Allocation Criteria Order of Priority for Allocations: 1. Preference entities in the P-DP marketing area that do not have a contract with Western for Federal power resources or are not a member of a parent entity that has a contract with Western for Federal power resources. 2. Preference entities in the P-DP marketing area that have a contract with Western for Federal power resources or are a member of a parent entity that has a contract with Western for Federal power resources. 3. Preference entities in adjacent Federal marketing areas that do not have a contract with Western for Federal power resources or are not a member of a parent entity that has a contract with Western for Federal power resources.

  18. General Allocation Criteria (Cont.) • Minimum Allocation is 1 MW. • Applicants seeking allocations as aggregated group must have satisfactory contractual arrangement by April 1, 2006. • Each member of aggregated group must meet preference and eligibility requirements.

  19. General Contract Principles • Western may reduce withdrawable power for priority use upon 2-year notice. • Applicants are responsible for third-party delivery arrangements. • No sale for resale of power allocations. • Incorporation of Western’s General Power Contract Provisions. • Western will enter into a single contract with aggregated groups with the aggregated entity as the contracting Party.

  20. General Contract Principles (cont.) • Western may adjust CROD upon 5 year notice due to changes in hydrology or operations (EPAMP). • Contractors are required to pay for service 1 month in advance for firm electric service. • Repayment of undepreciated replacement advances to the existing contractors which have reduced allocations.

  21. Proposed Allocations 21

  22. Proposed Allocations • Western received 79 applications for the Resource Pool. 34 applications were from entities in the first priority of consideration. • The Post-2008 Resource Pool proposed allocations published in the Federal Register July 17, 2006 (71 FR 40503). • The proposed allocations include 12 allocations to entities in the first priority of consideration and one allocation for irrigation pumping on Indian lands adjacent to the Colorado River.

  23. Proposed Allocations Factors considered in making the proposed allocation were: • Priority consideration for Indian irrigation pumping on certain Indian lands adjacent to the Colorado River in the lower basin • Widespread use of Federal resources • Magnitude of direct or indirect benefits from Federal resources • Load.

  24. Proposed Allocations Table

  25. Allocation Methodology Resource Pool Capacity: • Total Summer Capacity = 17,000 kW Withdrawable Capacity = 869 kW Non-Withdrawable Capacity = 16,131 kW • Total Winter Capacity = 13,000 kW Withdrawable Capacity = 619 kW Non-Withdrawable Capacity = 12,381 kW

  26. Step 1: Make Allocation for Indian Irrigation Pumping 26

  27. Step 2: MakeMaximum Number of 1 MW Allocations of Non-Withdrawable Capacity 27

  28. Step 3: Allocate Additional 1 MW (Summer & Winter) With Withdrawable Capacity To Allottee With Largest Load 28

  29. Step 4: Allocate Additional 1 MW Summer Capacity Each to Two Allottees With Next Largest Loads 29

  30. Next Steps And Contacts 30

  31. Public Comment Forums • Forum Dates & Location: • Phoenix, AZ September 12, 2006, 1:00 PM MST at Western’s Desert Southwest Office • Ontario, CA September 14, 2006, 1:00 PM PDT at Doubletree Hotel Ontario Airport

  32. Next Steps • Public Comment Forums • Submit Written Comments to Western Through September 15, 2006 • Western Evaluates Comments • Western Publishes Final Allocations FRN December 2006 • Begin Contract Development

  33. Parker-Davis Project • Submit written comments to: Mr. J. Tyler Carlson Western Area Power Administration P.O. Box 6457 Phoenix, AZ 85005-6457 or Fax: (602) 605-2490 or Email: Post2008PDP@wapa.gov

  34. Additional Information • Visit our website at: http://www.wapa.gov/dsw/pwrmkt • EPAMP Final Rule (Power Marketing Initiative) • Parker-Davis Project Marketing Area Map • Current Marketing Plan • Federal Register Notices • Comments • ContactBrian Young at 602-605-2594

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