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generally in the 20-25 mill range and is sold to customers at the firm energy rate - four mills per kilowatthour. An alternative would be to continue this practice of purchasing firming energy, but to sell this energy to customers at the average purchase cost. Slide IV-16 Project Generated Surplus Another situation which could arise more frequently since the filling of Lake Powe 11, is the avail ab il i ty of project generated s urp 1 us energy. At present it is sold to customers at the CRSP firm energy rate. Alter- nat i ves to th i s pract i ce wou 1 d be to se 11 it to customers at the average value of the energy we are purchasing or to market this generation in the fuel conservation program. Sl ide IV-17 Basis for Marketable Power We indicated earlier that the basis for arrlvlng at the amount of marketable power was the most adverse water condition for determination of marketable capac ity and average water condit ion for determinat ion of marketab le energy. However, some other basis could be used. We could consider using 90% proba- bility hydro or some level other than most adverse. We could likewise con- sider another basis for energy such as median water year energy, or limiting energy sales each year to what the projects will actually produce each year. Slide IV-18 . Delivery Conditions Delivery conditions of the existing criteria provide that the delivery loca- tion be at a designated or equivalent federal point of delivery or some other point as mutually agreed and at not less than 115 kilovolts. Western assumes cost of transmission and losses to the delivery points. Slide IV-l9 Delivery of Power Beyond Delivery Points Beyond the del ivery point, the customer assumes all costs for losses and for transmission service or facilities. Slide IV-20 Capacity and Energy Obligations - Factors to Consider There are a number of factors we need to consider with regard to energy and capacity obligations. These include requirements for pre-season and hourly 13