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<br />The concept that preference 1 aws promote "yardstick <br />competition" is an anachronism; and <br /> <br />The allocation criteria violate the constitutional rights <br />of the IOU and its municipal customers to due process and equal <br />protection, and also violate the 10th amendment. <br /> <br />On the subject of priorities among qualified preference entities, one <br />commenter suggested a category that would give nonpreference entities <br />inside the market area precedence over preference entities outside the <br />market area, with the intention to maximize benefits to Upper Basin <br />States. An additional comment requested clarification of a statement <br />provided by Western in the 1984 Proposed Criteria regarding. the <br />application of priorities to the pricing of nonfirm energy. <br /> <br />b. Di scussion: <br />The above comments have been grouped for discussion into the following <br />numbered categories: <br />(1) Preference Issues; and <br />(2) Priorities Among Qualified Preference Entities <br /> <br />(1) Preference Issues. Most of these comments repeat <br />comments made previously and addressed at some length by Western in <br />the 1984 Proposed Criteria. This response incorporates that previous <br />response by reference and updates the previous response with <br /> <br />11 <br />