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4. Why does the SLCA believe it must study the replacement of this loss? 5. What is the relationship between this Replacement Resource methods process, Reclamation's Glen Canyon Dam f/S, the SLCA/IP Electric Power Marketing flS, and Western's Energy Planning and Management Program E1S? In seeking to replace some or all of the power lost from GCD, the SLCA will consider obligations under existing long-term contractual commit- ments, existing purchase power authority, and the requirements of the Grand Canyon Protection Act of 1992. In 1989, the SLCA entered into long-term, firm electric service contracts to furnish wholesale power to eligible preference customers. These contracts committed the SLCA to provide specified amounts of power to its customers through September 2004. To provide some degree of resource certainty to these customers, contracts were written so that the customers could rely on the resource for the contract terrn. when hydroelectric power resources are reduced, the SLCA must pur- chase supplemental resources to meet its contractual commitments. Federal law, as interpreted by the courts, provides the SLCA the necessary authority to purchase power in amounts necessary to "firm up" the Federal hydroelectric resource. Additionally, in Section 1809 of the GCP Act of 1992, Congress directed the Secretary of Energy to examine methods to replace power lost from Glen Canyon because of changes in its operation. In so doing, Congress recognized the necessity of the Federal government to satisfy its contrac- tual obligations. Also, the SLCA understands that most of the smaller firm power custom- ers may not have the administrative capability to identify and evaluate replacement options and may have contractual limits on access to the electrical market. Many customers believe that the SLCA would be best situated to economically replace the lost capacity due to the Federal transmission system and economies of scale. Finally, the SLCA perceives a need to improve the value of the power it markets to the extent practicable. The addition of replacement resources may result in a more valuable electric power resource for the SLCA customers. The Department of the Interior will make a final decision on the opera- tion of GCD and make it available to the public in 1995. The implemen- tation of this decision is predicated on requirements specified in the Grand Canyon Protection Act. Changes in the operation of this dam are expected to reduce its ability to follow variations in hourly, daily, weekly, and seasonal electrical load. The upcoming decision on GCD will define the amount of Glen Canyon electrical resource made available to the SLCA. The 5LCNIP Electric Power Marketing EIS examines alternative commit- ment levels of electrical power which the SLCA could offer its customers under long-term contracts. The SLCA's present resources to meet these commitment levels include powerplants at Glen Canyon; Flaming Gorge; the Aspinall Units; the Collbran, Seedskadee, and Rio Grande Projects; and purchases from regional electric power generators. The combination of the SLCA's commitment level decision and Reclamation's Glen Canyon decision will define the SLCA's near-term electrical power shortage - the amount of additional electrical power the SLCA will need to meet its contractual obligations through September 2004.