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<br />VIII. ENVIRONMENTAL EVALUATION <br /> <br />In compliance with the National Environmental Policy Act (NEPA) of 1969 <br />and DOE guidelines published in the Federal Register on February 23, 1982, 47 <br />FR 7976, Western follows the process described below in conducting <br />environmental evaluations of proposed rate adjustments. <br /> <br />Section 0 of the DOE guidelines states that for rate increases for power <br />marketing administrations, the level of documentation under NEPA depends upon <br />the size of the rate increase as it relates to the rate of inflation since the <br />last rate increase. If the rate increase exceeds the rate of inflation since <br />the last rate increase, an environmental assessment (EA) is normally <br />required. An EA considers the impacts of the proposed rate increase and <br />alternatives on the. environment. <br /> <br />Although the Integrated rate is new, the customer base remains the same, <br />the vast majority of which are CRSP customers. Therefore, Western concluded <br />that it was appropriate to make the environmental determination based on the <br />existing CRSP rate. Under integration, Collbran and Rio Grande customers will <br />receive from the Integrated Resources through FY 1989, fixed commitments <br />approximately equal to amounts they are now receiving. This will result in <br />decreased costs to these customers. Western analyzed the effect this would <br />have on consumption as a part of its post 1989 Marketing Criteria Environmental <br />Assessment (DOE EA-0265) and found that it did not significantly affect <br />consumption. For the post 1989 period, these customers will receive reduced <br />allocations from the Integrated projects. <br /> <br />Since the size of the rate increase does not exceed the rate of inflation <br />in the period since the last rate increase and the increases in consumption due <br />to lower prices are not significant, an EA is not necessary. <br /> <br />IX. REGULATORY FLEXIBILITY ACT OF 1980 <br /> <br />Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 601 et ~., <br />each agency, when required by 5 U.S.C. 553 to publish a proposed rule, is <br />further required to prepare and make available for pUb1ic comment an initial <br />regulatory flexibility analysis to describe the impact of the proposed rule on <br />small entities. In this instance, the initiation of the Integrated Projects <br />rate relates to nonregulatory services provided by Western at a particular <br />rate. Under 5 U.S.C. 601(2), rules of particular applicability relating to <br />rates or services are not considered "rules" within the meaning of the Act. <br />Since the Integrated Projects power rate is of limited applicability, no <br />flexibility analysis is required. <br /> <br />X. PROCEDURES FOR PUBLIC PARTICIPATION IN POWER AND TRANSMISSION RATE <br />ADJUSTMENTS AND EXTENSIONS <br /> <br />Procedures for public participation in power and transmission rate <br />adjustments and extensions have been published as 10 CFR Part 903 in the <br />Federal Register at 50 FR 37835 (September 18, 1985), and as amended at 50 FR <br />48075 (November 21, 1985). <br /> <br />6 <br />