Laserfiche WebLink
F. SYSTEM-WIDE OPERATIONS AND CONSIDERATIONS <br />Further consideration must be given to the flexibility afforded <br />Western when generation at Flaming Gorge is not restricted. As <br />described earlier, transmission capability in the Flaming Gorge <br />area is limited. Current generation at Flaming Gorge reduces the <br />need to meet load requirements in Utah from generation facilities <br />in Colorado and thus reduces the loading on Utah to Colorado <br />transmission facilities. The economic impact of this factor <br />escapes quantification but may affect Western's operations. <br />Contracts allow customers and Western some flexibility in <br />scheduling energy delivered from Western. Western's customers <br />may not be directly affected by rescheduled generation at Flaming <br />Gorge and Aspinall but Western may have to purchase energy to <br />meet its customers' needs. Therefore, given existing load <br />patterns, thermal energy suppliers will either need to reschedule <br />generation to meet the demands of Western's customers or <br />reschedule to meet Western's demands. <br />Whatever assumptions are used by Western, the rescheduling of <br />energy generated at Flaming Gorge and Aspinall will affect the <br />power generating industry. The value of this impact is measured <br />by comparing current operating conditions in the industry with <br />potential operating conditions after dam operations are refined. <br />The value of unavailable power from Flaming Gorge is the increase <br />in the Project rate and the partial loss of use of 47 MW of <br />generating capacity. The traditional method is to value this <br />power at thermal plant replacement rates. The value of <br />rescheduled generation at Flaming Gorge and Aspinall is the <br />decrease in generation in one season multiplied by its market <br />price in that season minus the subsequent increase in generation <br />in the other season times its market price in that season. <br />Some estimates of these costs were developed for the Recovery <br />Implementation Program for Endangered Fish Species in the Upper <br />Colorado River Basin Environmental Assesment. The estimates are <br />outlined in Appendix C, Alternative Thermal Plant Study for <br />Flaming Gorge (attached). The following is a summation of the <br />value of lost capacity and rescheduled generation. This estimate <br />is based on the assumption that lost capacity would be replaced <br />with a thermal facility. <br />Flaming Gorge Unavailable Capacity: ($5,835,050) <br />Flaming Gorge Rescheduled Energy: (298,189) <br />Aspinall Rescheduled Energy: 47,000 <br />Future Value of Societal Impacts ($6,086,239) <br />7