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water year, CNPPID will determine based on physical and operational impacts if <br />regulation beyond 4,000 acre-feet will be available to the Program). <br />(2) In planning for flow enhancement and requesting regulation and bypass, the EA <br />Manager will seek to limit the EA water intentionally bypassed at CNPPID's <br />diversion dam to the minimum amount necessary to achieve the intended flow <br />magnitude and duration downstream of the J-2 return and will rely to the extent <br />feasible on the regulation of flow in CNPPID's system to enhance flows. <br />Planning and requests for regulation and bypass will also include reasonable <br />ramping rates to attempt to avoid damage to CNPPID's system. Throughout the <br />peak, pulse or other short duration high flow event being enhanced, CNPPID will <br />continue to release water as necessary to meet or exceed the minimum flow <br />requirements at its diversion dam called for in section III of the EA document, in <br />accordance with the compliance measures in section III.G which measure flows <br />for compliance purposes excluding EA releases. . <br />(3) To assist in creating or enhancing peak, pulse or short duration high flows, NPPD <br />will coordinate the operations of the Sutherland Project with the EA Manager and <br />CNPPID, and, if requested, will intentionally bypass EA water and/or reregulate <br />EA water or other water in its system to the extent feasible without impacting <br />NPPD's ability to meet other downstream demands and to operate the system in a <br />manner that is consistent with safe business operations. <br />c. When reregulation is provided with or without intentional EA bypass, the Program will <br />provide payment to the Districts in an amount equivalent to resultant lost power production, <br />increased power acquisition costs and other associated costs, and will provide water from the EA <br />as needed to refill the Districts' systems ("borrow and payback"). The EA Manager will not call <br />for reregulation with or without intentional EA bypass resulting in total payments that exceed $ <br />3,081,000 for the following activities during the first increment of the Program, unless approved <br />by the GC. <br />(1) Lost power production and increased power acquisition costs include: <br />a. Power generation forgone by CNPPID, valued at rates consistent <br />with CNPPID's then-applicable power sales agreement(s); <br />b. For so long as CNPPID sells the power it produces at its canal <br />hydropower facilities to NPPD, the net additional cost, if any, to NPPD of <br />obtaining replacement power for the generation foregone by CNPPID. The cost <br />of the increase in power, if any, would be based on the delivered market price of <br />power at the time of by-pass as compared to the contract price from CNPPID; <br />c. If CNPPID sells the power it produces at its canal hydros to <br />another party, the net additional cost, if any, to the other party of obtaining <br />replacement power for the generation foregone by CNPPID; and <br />d. The net increase in cost to NPPD, if any, from replacing power <br />foregone by NPPD facilities during times of EA by-pass. The cost of the <br />replacement power, if any, would be based on the delivered market price of <br />power. <br />(2) Other associated costs to be paid for by the Program beyond direct lost power <br />production and increased power acquisition costs may occur if equipment or <br />facilities are operated outside the normal range to accommodate reregulation <br />and/or EA bypass. They may include bank sloughing in canals and reservoirs, <br />August 8, 2006 Water Management Process 5