Parker-Davis ProjectPost-2008 Re-marketing

Application of Energy Planning and Management Program Power Marketing Initiative

Public Information Forum

"We market and deliver reliable, cost-based hydroelectric power and related services”

-- Strategic Plan

What is Western?

Service Area

• 15 Western States• 17,000 miles of transmission lines• Over 250 substations• 40 billion kilowatt-hours of energy each year• About 600 customers

Western’s Regions

Desert Southwest Region•About 2,500 megawatts allocated to customers• 3,100 miles of transmission lines• More than 70 customers

DSW Projects

• Power and transmission marketed on a project-by-project basis

Boulder Canyon ProjectParker-Davis ProjectCRSP Southern DivisionPacific NW/SW Intertie Project

Parker-Davis Project

• 283 MW of marketed capacity including project use• 26 Firm Electric Service Customers• Firm Electric Service contracts expire September 30, 2008

“The Program requires the preparation of integrated resource plans by Western’s customers and establishes a framework for extension of existing firm power resource commitments.”

Components of EPAMP (10 CFR 905)» Integrated Resource Planning» Power Marketing Initiative

Energy Planningand Management Program

Extend Major Portion of Resource

Entitlement

Establish Resource Pool

Used for New Customers

Power Marketing Initiative

Pick-Sloan Missouri Basin Program -

Eastern Division

Loveland Area Projects

Central Valley Project

Salt Lake City Area/Integrated Projects

Western Marketing Efforts

Applicability of PMI

• Varies by Project The PMI originally applied only to the Pick-Sloan Missouri Basin Program-Eastern Division and the Loveland Area Projects (EPAMP FRN, October 1995)

Pick-Sloan Missouri Basin Program-Eastern

Division and Loveland Area Projects

» Extended 20 Years

» 96 Percent Extended

» Two additions to resource pool of up to 1% each of marketable resources

Western Marketing Efforts

Central Valley Project

» Extended 20 Years

» 96 Percent Extended

» One addition to resource pool of up to 2% of marketable resources

Western Marketing Efforts

Salt Lake City Area/Integrated Projects

(Colorado River Storage Project)

» Extended 20 Years

» 93 Percent Extended

» No additions to resource pool

Western Marketing Efforts

PMI Application to Parker-Davis

“Western will evaluate application of this PMI to other Western firm power contracts that expire after January 1, 2005---principally the Parker-Davis and Boulder Canyon Projects.”

“This evaluation will be published after a separate public process and will take place no more than 10 years before termination of these contracts.”

Parker-Davis Project proposal (proposed in 67 FRN 51580, dated 8/8/02)

» Extend 94 Percent of Marketable Resource» 20 Years From October 1, 2008» 6% Resource Pool for New Customers» No Additional Incremental Resource Pools

Parker-Davis Project FRN

Proposal for 6% Resource Pool

» Consistent with Total Resource Pool Percentages of other Western Projects

» Consistent with PMI to Extend a “Major Portion” of Power Under Contract

» Consistent with PMI to Reserve a “Modest Percentage” of Resources for Pool

Parker-Davis Project FRN

Contracts will be extended under the Current Marketing Plan:» General Consolidated Power Marketing Criteria

(48 FR 20872)» Conformed General Consolidated Power

Marketing Criteria (49 FR 50582)» Proposed Allocation Criteria and Allocations (52

FR 7014)» Final Allocation Criteria and Allocations

(52 FR 28333)

Parker-Davis Project

Marketing Plan under the PMI

» Power Marketing Initiative» Eligibility and Allocation Criteria» Resource Definition» Size of the Resource Pool

Parker-Davis Project

P-DP Marketing Plan

» P-DP Marketing Area» Preference Customer Criteria» Current Bundled Product

Parker-Davis Project

P-DP Marketing Area

Preference Customer (per Reclamation Project Act of 1939)

» Municipality» Cooperative» Public Power District» Public Utility District» Government Entities» Native American Tribes

Parker-Davis Project Firm Power

Firm Electric Service for capacity and energy Including Transmission and Ancillary Services

Withdrawable and Non-Withdrawable Power

Parker-Davis Project

Withdrawable

Summer Capacity = 16,030 kW

Winter Capacity = 9,460 kW

Non-withdrawable

Summer Capacity = 226,485 kW

Winter Capacity = 176,070 kW

(Figures exclude Project Use Power)

Firm Electric Service (Capacity)

Withdrawable

Summer Energy = 55,159,230 kWh

Winter Energy = 16,110,380 kWh

Non-withdrawable

Summer Energy = 779,586,653 kWh

Winter Energy = 299,678,271 kWh

(Figures exclude Project Use Power)

Firm Electric Service (Energy)

Parker-Davis Project Capacity (kilowatts)

283,015 kW Available

- 40,500 kW Project Use

242,515 kW Available for Allocation & Sale

x .94 Extension Factor

227,964 kW Available for Extension

to Existing Customers

Capacity Available for Extension

Parker-Davis Project Capacity (kilowatts)

283,015 kW Available

- 40,500 kW Project Use

242,515 kW Available for Allocation & Sale

x .06 Resource Pool Factor

14,551 kW Available for Resource Pool

Capacity Available for Resource Pool

Total Marketable Parker-Davis Project Energy by season (exclusive of Project Use)

Summer 834,745,883 kWh

Winter 315,788,651 kWh

Parker-Davis Project Energy

Seasonal Parker-Davis Project Energy (kWh)

Summer 834,745,883 kWh

x .94 Extension Factor

784,661,130 kWh To Be Extended

Winter 315,788,651 kWh

x .94 Extension Factor

296,841,331 kWh To Be Extended

Energy Available for Extension

Seasonal Parker-Davis Project Energy (kWh)

Summer 834,745,883 kWh

x .06

50,084,753 kWh Resource Pool

Winter 315,788,651 kWh

x .06

18,947,319 kWh Resource Pool

Energy Available for Resource Pool

Utility Status» Ready, Willing, and Able to Take Power» Distribution System» Responsible for Load Growth

Must Sign Long-Term Contract Must Comply With IRP Provision

Eligible Preference Customers

Sign Long-term Firm Electric Service Contracts in Spring of 2004

Existing Customers

Public Comment Forums:

» Las Vegas, Nevada --- October 8, 2002

» Phoenix, Arizona --- October 9, 2002

» Ontario, California --- October 10, 2002

Public Comment Forums Submit Written Comments to Western

» Applicability of the PMI to Parker-Davis» Resource Extension Percentage» Size of the Resource Pool

Comment Period Ends November 6 Western Evaluates Comments Western Publishes Final Decision FRN

Next Steps in this Public Process

Submit written comments to:

Mr. J. Tyler Carlson

Western Area Power Administration

P.O. Box 6457

Phoenix, AZ 85005-6457

or Fax: (602) 352-2490

or Email: Post2008PDP@wapa.gov

Marketing Plan Criteria:» Define Eligibility Criteria» Define Allocation Criteria» Define General Contract Principles

Allocations » Determine Successful Applicants» Determine Resources to be Allocated

Future Public Process Decisions

Visit our website at:

http://www.wapa.gov/dsw/pwrmkt

» Power Marketing Initiative - Subpart C» Parker-Davis Project Marketing Area Map» Federal Register Notice (dated 8/8/02)» Current Marketing Plan