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L Power production revenues produce the major source of income for the Basin Fund. Since according to law, the project can only repay itself and not generate a profit, power marketing rates are set and adjusted periodically to accomplish the 50-year repayment. Changes in operating costs, generation capability or participating projects are reflected in changes in CRSP wholesale power rates. 3.4 Power Generation and Marketing The power plant at Flaming Gorge Dam contains three generating units with a combined capacity of 108 megawatts (MW). At current generator operating constraints, the plant can produce 132 MW, which is 7.7 percent of the CRSP total capacity of 1720 MW. Flaming Gorge is tied into an electrical grid which stretches across most of the western third of the nation. The production of power within the Colorado Basin portion of the grid is controlled by the Western Area Power Administration (Western). Western is responsible for the Federal electric power marketing and transmission function in 15 central and western states. Western sells power to cooperatives, municipalities, and various electrical utilities. Western schedules and controls hourly reservoir operations (most operations are remotely controlled) from its offices in Montrose, Colorado. . Section 7 of the CRSP Act directs the Secretary of the Interior to operate CRSP dams to produce the greatest practicable amount of capacity and energy that can be sold at firm rates. However, the Act specifies power generation and other uses to be incidental to the primary project purposes of water conservation, flow regulation and the control of floods. Within these constraints, energy and capacity available from CRSP facilities have been placed under long-term contract subject to provisions of the initial General Power Marketing Criteria as revised February 6, 1984. These criteria identified the market area, service seasons, classes of service, and power available for allocation. In addition, criteria were established for the contractual obligations of the purchasers for the scheduling, accounting, and receipt of delivery of capacity (capability to supply energy on demand) and energy by Western. The following five classes of service were established by the Marketing Criteria: 1. Long-term firm power with associated energy. 2. Short-term firm power with associated energy (seasonal or monthly). 3. Long-term peaking power without energy (seasonal or monthly). 4. Short-term peaking power without energy (seasonal or monthly). 5. Other power, including such services as emergency and maintenance services, fuel replacement, and delivering or receiving interchange. 3-3