WSP02492

• File Number: 8220.100.50
• Description: CRSP
• Basin: Colorado Mainstem
• Date: 3/1/1988
• Author: WAPA
• Title: Replacement Resources Processes - Final Methods Report - Executive Summary
• Water Supply Pro - Doc Type: Publication

EP Act, offers guidelines that Western will
apply in evaluating replacement resources.
To the extent that Western acquires
replacement power at the request of
individual customers, this policy will also
provide consistency between Western's
replacement power acquisition process
and the customer's IRP,

Key Policy Issues

After the public comments received
during the public consultation phase of the
Replacement Resources Process were
analyzed, certain fundamental policy
issues were addressed by Western as part
of the process of developing a useful and
focused Methods Report,

STRATEGIC GOALS: The primary concern
to Western's SLCMP customers will be
the cost competitiveness of potential
replacement resources relative to other
power options available in the new, more
competitive, wholesale power market.
The primary goal of the Replacement
Resources Process and this Methods
Report is to comply with requirements of
Section 1809 of the Grand Canyon
Protection Act that called for "establish-
ing methods to acquire replacement
power resources at a cost to its firm
power customers that is competitive in
the market." Western's Principles of IRP
also dictate that potential replacement
resources be evaluated in a fair and
equitable manner.

In identifYing acceptable methods for
acquiring replacement power, the analysis
maintained a focus on the following
strategic goals:

, comply with the GCP Act;

comply with the CRSP Act and related
legal mandates;

adhere to Western's Principles of IRP;
and

obtain least -cost replacement power for
Western's customers.

OTHER RELATED ISSUES: Other key policy
issues that were considered in the analysis
included:

the potential for future resource integra-
tion with Hoover Dam and Power
Plant;

, the nature of the resource evaluation
criteria regarding acceptable technolo-
gIes;

. the possible treatment of external costs,
or externalities, in the evaluation
process;

, the treatment of transmission-related
commitments and constraints;

the consideration of energy efficiency
efforts by Western for loads under its
control;

, the appropriate planning horizon for
consideration of replacement resource
options; and

, the level of future public involvement
and environmental compliance in the
methods implementation stage.

It is possible that additional strategic
goals or guidelines for replacement
resource acquisition may be considered in
the future based on other agency or
departmental policy mandates.

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