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<br />CHAPTER 1 <br /> <br />PURPOSE AND NEED <br /> <br />the immediate and future power needs within Colorado and the <br />immediate region. <br /> <br />Integrating facility power into the local grid would supply <br />additional benefits to local power quality and reliability. <br />Operating the facility, with its proximity to the Montrose load <br />center, would provide an alternate power source in case temporary <br />outages occur at Colorado Ute Electric Association thermal plants <br />or transmission lines. In addition, the facility would provide <br />needed voltage support to the local system, alleviating a problem <br />which usually occurs when load is separated from generators by <br />long transmission lines.. <br /> <br />Finally, operation of the facility would enhance the State of <br />Colorado's electrical reliability by contributing to fuel <br />diversity. Colorado and the rest of the Rocky Mountain power <br />area rely heavily on coal to fuel major powerplants. Adding of <br />hydroelectric generation to the system would help mitigate <br />economic difficulties if the coal supply were interrupted, if <br />coal prices were to increase substantially, or if acid rain <br />legislation required installation of emissions reduction <br />equipment at existing facilities. <br /> <br />Renewable Resources <br /> <br />In passing the National Energy Act of 1978, Congress found that: <br /> <br />[T]he protection of the public health, safety, and welfare, the <br />preservation of national security, and the proper exercise of <br />congressional authority under the Constitution to regulate <br />interstate commerce require...a program providing for increased <br />conservation of electric energy, increased efficiency in the <br />use of facilities and resources by electric utilities, and <br />equitable retail rates for electric consumers, [and]. ..a <br />program to provide for the expeditious development of <br />hydroelectric potential at existing small dams to provide <br />needed hydroelectric energy (PURPA, Section 2; Public <br />Law 95-617). <br /> <br />One of Congress' key motivations in passing this bill was to <br />reduce the national dependence on fossil fuels. Developing t~e <br />AB Lateral Facility would eliminate the need to construct and <br />(or) operate an equivalent amount (40 to 50 MW) of fossil~fueled <br />generation, thus reducing dependence on fossil. fuels. . <br /> <br />Recently, emissions-related problems have been brought to the <br />forefront of national attention. The principal s~okestack gasses <br />released from fossil-fueled powerplants includ~ sulfur and <br />nitrogen oxides and carbon dioxide. The sulfur and nitrogen <br /> <br />1 -5 <br /> <br />~~ <br />