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<br /> <br />4. Geothermal resources can be economically developed incrementally in step <br />with load growth demands rather than developing large projects that have expensive <br />excess capacity which must be carried by the rate payer until demand catches up. <br /> <br /> <br />S. Because geothermal resources are scattered throughout the west, W AP A <br />can buy power from a number of resources in different parts ofits service territory, thus <br />preserving scarce long distance transmission capacity. <br /> <br />IfW AP A decides to buy power from renewable resources, it will have to <br />anticipate its needs far enough in advance to contract for the power and provide sufficient <br />time for the project to be built. Renewable power projects are built and their power <br />dedicated to specific power purchase agreements. Geothew.al power projects generally <br />require a minimum of two years from contract signing to commercial operation. <br /> <br />If you would like additional information about the characteristic of geothermal <br />power projects or their pricing, please feel free to contact me. <br /> <br />Very truly yours, <br /> <br /> <br />Thomas A. <br />Vice Preside <br /> <br />neral Counsel <br /> <br />TAQ:hs <br />