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customer for the duration of the contract period. If the Integrated Projects cannot supply firm power from their own resources, the power must be purchased for sale to the customer. Net energy available is taken from the CRSP, Collbran, and RGP PRSs and is summed for the Integrated Projects PRS to arrive at Integrated Projects firm power. All firm power is sold at Integrated Projects firm power rates. a. Long-Term Firm Capacity and Energy. This is the maximum amount of capacity to which the customer is entitled in the peak months of each season and the firm energy to which the customer is entitled in each season. Contractual periods longer than 1 year are long-term. b. Short-Term Firm Capacity and Energy. Short-term power is usually referred to as "Excess Capacity" and "Surplus Energy," which may become temporarily available from the Integrated Projects resources, normally due to high reservoir storage. Because of the temporary nature of the power, it is sold on a short-term basis only, usually for a season, and never for more than 1 year. 3. Fuel Replacement and Economy Energy Sales. Any energy available from the Integrated Projects over and above what is sold on a firm basis is offered on the spot market to replace more expensive or unavailable thermal generation. Fuel replacement energy is sold at 85 percent of the buyer's avoided cost. Economy energy.sales are made at mutually agreeable or market-based rates. The FY 1989 CRSP Preliminary PRS includes the assumption that approximately 1,500,000 MWh of fuel replacement and economy energy will be sold each year through FY 2004. For the PRS, all future fuel replacement and economy energy sales are assumed to be purchased energy. The Integrated Projects will pay an estimated $28,500,000 to buy annual short-term energy (19.0 mills/kWh). The sales will earn about $34,500,000 (30.0 mills/kWh) annually. This will mean an annual net revenue to the Integrated Projects of $6,000,000. 4. Reimbursement for Hoover Deficiency Purchases. Colorado River water held back during the initial filling of the CRSP storage unit reservoirs was not available for power generation at the Boulder Canyon Project's Hoover Powerplant. CRSP supplied the power lost to Boulder Canyon from its own generation and from power purchases. The Colorado River Basin Project Act provides that Lower Colorado River Basin funds shall be used to reimburse the CRSP for the so-called "Hoover Deficiency" power purchases. The rate of payment was defined in the legislation as $500,000 annually until FY 1987. Reimbursement is scheduled to be completed by FY 2005, with equal annual installments in FYs 1988 through 2005 of $1,532,868. 10