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Sl ide IV-25 Allocation - Classes of Customers The classes of customers we propose to cons i der in the all ocat ion of re- sources in the post 1989 market i ng peri od fall into four groups: proj ect use loads; ex i st ing preference customers; new preference customers; and finally, non-preference customers. Government loads could be mil itary or Department of Energy needs while entities with renewable resources or cogeneration might be any preference customer. We are interested in encourag i ng the deve 1 opment of renewab 1 e resources and cogenerat ion and are interested in interfacing with customers developing these resources in such way as to enhance their development and utilization. Slide IV-25 Allocation - Alternatives One of the determinations we must make along with the many other things being considered is the establishment of the ground rules for allocating the post B9 resources. For existing preference customers the allocation could be based on the contract rate of delivery for long term firm power or long term firm power plus peaking. An alternative would be to use customer load, either historical or ,estimated future load. Allocations to new preference customers could be 'based on either historical loads or future estimated load; a special consideration might be given to entities utilizing renewable resources or cogeneration. Slide IV-27 Allocation - New Customers Comments from previous meetings indicated that there are some preference entities who are not customers now who would like to contract for CRSP power in the future. We have considered some alternatives for making power avail- able for allocation to new customers or additional power available to exist- ing customers such as Department of Energy loads. One possibility for cre- at i ng a "resource poo 1" mi ght be to 1 imi t CRSP power to some percentage of a customer's total loads based on CRSP power or based upon total Federal' resources. Another might be to reduce the contract rate of del ivery of cus- tomers with a large allocation of CRSP power by some fixed percentage, or we might reduce the size of the market or use a combination of these methods. Slide IV-2B Contractual Arrangements The contractual arrangements for the existing criteria provide that present contracts will run through September 1989 with short term power being avail- able seasonally or monthly. It also requires a notice five years prior to contract expiration to reduce long term power or to substantially change the amount of energy. 15