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Western welcomes new customers

Every 20 years, Jupiter aligns with Saturn and Western brings new firm power customers into its orbit, an occasion governed not by the planets and stars but by the Power Marketing Initiative of Western’s Energy Management and Planning Program.

The PMI set 20-year contracts to provide Western's long-term, firm power customers with the resource stability to support integrated resource planning and efficient energy use. Having a stable resource mix gives customers a starting platform from which then can add new resources or demand-side management measures to meet load growth.

As existing contracts expired, a small amount of power was reserved for new customers in project-specific resource pools. Western allocates resource pool resources to new preference customers such as Native Americans and universities.

The PMI specifically targeted Native Americans to receive allocations for reservation use. Although Western always considered tribes to be preference entities, historically only tribal utilities received allocations. Some reservations also received hydropower through cooperatives that served tribal loads. A 1995 policy change allowed tribes to apply for allocations directly based on tribal member usage rather than utility status.

Native American tribes in two regions become hydropower users
In October, the CRSP Management Center and the Rocky Mountain Region began serving a total of 57 new customers, all Native American tribes.

The Iowa Tribe of Kansas and Nebraska, the Kickapoo Tribe in Kansas, the Prairie Band Potawatomi Nation and the Sac and Fox Nation of Missouri all signed contracts for allocations from the Loveland Area Projects resource pool. “More public power communities are now reaping the benefits of Federal power in the West,” RMR Energy Services Representative Peggy Plate observed. “It's good for both communities and consumers. It helps keep rates low and adds diversity to their resource mix.”

The remaining 53 customers are located in the CRSP MC’s service territory. “We look forward to working with the tribes, and strengthening our relationship with them as our customers,” said CRSP MC Energy Services Representative Paula Fronk.

The new customers may be equally enthusiastic about working with Western’s Energy Services program. Many of the tribes have investigated or undertaken renewable energy development and energy efficiency programs. The Fort Mojave Tribe, Jemez and Taos pueblos, White Mountain Apache Tribe and Yavapai Apache Nation conducted feasibility studies through the Department of Energy’s Tribal Energy Program. The program funded solar installations for the Jicarilla Apache Nation and the Laguna Pueblo.

New Sierra Nevada customers practice sustainability
There are several Native American tribes among the Sierra Nevada Region’s new customers, too. One, the Coyote Valley Pomo Tribe, has been working with the non-profit Builders Without Borders to launch a sustainable model homestead project. As envisioned by the tribe, the model would be a homestead incorporating ecologically and economically sustainable water, waste, power and food production systems.

The municipalities joining Western’s Sierra Nevada family also have an interest in sustainable practices. The city and county of San Francisco is moving forward with construction standards that will save the city millions in operational costs. The city’s recently enacted Green Building Ordinance promotes design principles that help to increase energy efficiency, protect the environment and improve employee productivity.

Truckee Donner Public Utility District helped Sierra College create an energy demonstration site at its Small Business Development Center building.

TDPUD and the city of Fallon, Nev., contracted to buy one of Western’s custom products, a basic resource firming package, tailored to the needs of relatively small utilities. Custom products are supplemental services that address customers’ specific power needs. Sierra Nevada’s 2004 marketing plan allows customers to add custom products to their firm power contracts.

Desert Southwest launches new allocation process
All of Western’s projects follow the same 20-year contract term, but on different cycles. Upper Great Plains is nearing the end of the allocation process for its post-2005 resource pool, and Desert Southwest is beginning the process for the post-2008 power pool from the Parker-Davis Project.

The procedure begins with Western seeking public comment on its proposed allocation criteria and issuing a call for applications. The deadline for written comments and applications for Parker-Davis power is Dec. 30, 2004.

Following the public comment period, Western will set eligibility criteria, evaluate applications and set the terms and conditions under which it will sell the allocated power. Then, on Oct. 1, 2008, a new group of customers will begin receiving their power allocation from the Parker-Davis Project.

A new cycle will be set in motion, spreading low-cost, reliable Federal hydropower and wise energy planning practices throughout Western’s service territory. Think of it as the Age of Aquarius for the power industry.