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<br />responsibility. Panguitch is therefore a potentially qualified <br />app1ic~nt for power hereunder. <br /> <br />(3) 'Resale Compliance by Existing Customers. The 1984 <br />Propos.d Criteria included an obligation of existing customers to <br />demonstrate compliance with the spirit of the Resale of Electric <br />Energy article in their current contracts in order to receive an <br />allocation. Western indicated that existing customers could show that <br />the benefits of low-cost power have been passed on to the consumer, as <br />required by the article, by at least two possible ways: (1) through <br />the lowest possible rates, or (2) through rates established in an open <br />and public manner to provide revenues to accomplish legitimate public <br />purposes. <br /> <br />No comments were received on this requirement, indicating that <br />existing customers are confident they can demonstrate compliance with <br />the spirit of the article. The SLCAO annually asks its contractors to <br />submit the data requested in that article, and data is now regularly <br />submitted. To eliminate the administrative burden associated with a <br />comprehensive review of compliance documentation in conjunction with <br />the allocation process, Western has decided to eliminate resale <br />article compliance as an eligibility requirement. Assuring that the <br />benefits of low-cost power are passed on to consumers will continue to <br />be an objective which can be achieved under contract provisions, and <br />need not complicate the allocation process. <br /> <br />27 <br />