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D. POWER GENERATION AND MRKETING <br />Flaming Gorge and the Aspinall Unit are tied into an electrical <br />grid which stretches across most of the western third of the <br />nation. The production of power within the Colorado Basin portion <br />of the grid is controlled by Western. Western is responsible for <br />the Federal electric power marketing and transmission function in <br />15 central and western States. Western sells power to <br />cooperatives, municipalities, and various electrical utilities. <br />Western schedules and controls hourly reservoir operations (most <br />operations are remotely controlled) from its offices in Montrose, <br />Colorado. <br />Monthly Operations <br />The Bureau informs Western on a monthly basis as to the amount of <br />water in all Project reservoirs which can be released. Western <br />then schedules daily releases to maximize revenues and to balance <br />load on the transmission grid. Peak electrical demand is spread <br />across the summer air conditioning load and the winter heating <br />season. Peak summer months are June, July, and August with winter <br />peaks in January, February, and March. These general demand <br />patterns are refined on a yearly basis to reflect changes in the <br />general climate and runoff forecasts. <br />Section 7 of the Project Act directs the Secretary of the Interior <br />to operate Project dams to produce the greatest practicable amount <br />of capacity and energy that can be sold at firm power rates (fixed <br />rates). However, the Act specifies power generation and other <br />uses to be incidental to the primary project purposes of water <br />conservation, flow regulation and the control of floods. Within <br />these constraints, energy and capacity available from project <br />facilities have been placed under long-term contract subject to <br />provisions of the initial General Power Marketing Criteria as <br />revised February 6, 1984. These criteria identified the market <br />area, service seasons, classes of service, and power available for <br />allocation. In addition, criteria were established for the <br />contractual obligations of the purchasers for the scheduling, <br />accounting, and receipt of delivery of capacity and energy by <br />Western. <br />The following five classes of service were established by the <br />Marketing Criteria: <br />(1) Long-term firm power with associated energy. <br />(capacity and use of power) <br />(2) Short-term (seasonal or monthly) firm power with associated <br />energy. (short term capacity and use of power) <br />(3) Long-term seasonal or monthly peaking power without energy. <br />(standby capacity only) <br />(4) Short-term seasonal or monthly peaking power without energy <br />(stand by capacity only). <br />4