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tenn of the current power sales agree- ments, Western will implement the process by which replacement power may be acquired, but the customers will detennine the level of resource purchases by Western. Resource A!cquisition Four main principles will guide . Western's replacement resource acquisition: (1) least cost, (2) rate reasonableness to Western's customers " (3) an appropriate level of public review, and (4) process documentation. This . section describes how Western intends! to approach the acquisition of replaceme~t resources, General Approach Potential replacement power reo: sources might include a wide range oi alternatives. These alternatives could! include long-tenn finn power purchas~s, lease or ownership-like entitlements irl one or more specific generating units, long- tenn power exchanges, long-tenn integra- tion agreements with other federal hy~ro- electric projects, and possibly new or! upgraded power transmission facilitie~. However, thereis no implicatio~ that power made unavailable at Glen Cm{yon Dam must be replaced megawatt-for- megawatt through long-tenn commit- ments. Instead, Western has agreed ~with its customers that replacement powe~ will be offered on an established schedul~, based on individual customer request~, and acquired competitively. Based on pr6vi- sions of the agreement, Western will: consult with its customers to define the amount and timing of replacement ppwer as part of Western's finn-power market- ing program through the tenn of the Ipower sales agreements, including a potentIal tenn extension. ! IS The trade-off for allowing customers to select the amount of replacement resource they need is the requirement that they financially commit to their prop;ortion- ate share of the costs associated with the replacement resource. At least for!the Any combination of building new resources, leasing existing resources, or purchasing or exchanging power from others are potential candidates to replace Glen Canyon resources. However, surplus generating capacity in Western's marketing area, coupled with the ongoing restructuring and deregulation in the electric utility industry, have made the purchase of power from others a viable, low-cost option now and for the foresee- able future. Moreover, through its own transmission facilities and entitlements in other systems, Western has extensive access to the bulk power market in the Intennountain and Desert Southwest regions of the western United States. The specific characteristics (e.g., type, cost, location, etc.) of prospective replacement resources will be important later in the implementation phase of the acquisition process, so the acquisition methodology described in this report was designed to account for a variety of potential resource characteristics. Customer Power Needs Western's finn power contracts limit the maximum amount of power that Western may be requested to replace. This maximum amount of replacement power is the difference between Western's total finn load obligation and hydroelectric power availability. However, individual customers may request that all,