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<br /> <br /> <br />III <br /> <br />there will be no direct effect on Western's <br />base wholesale firm-power rate. <br /> <br />Acquisition Process <br /> <br />Replacement resources will be <br />acquired by following these technical <br />steps: <br /> <br />, estimate replacement resource need; <br />i <br />, establish eligibility and minimum st!n- <br />dards for the power resource offer~d, <br />the entity offering the resource to i <br />Western, and the financial and legal <br />obligations of Western; <br /> <br />. develop a request for replacement i <br />power, which for longer-term repl:;lce- <br />ments may take the form of a fonnal <br />request for proposals (RFP); <br /> <br />, compile responses to the request for <br />replacement power, and protect the <br />confidential information submitted in <br />proposals; <br /> <br />, determine the availability oftransrtrls- <br />I <br />sion capacity to reliably and economi- <br />cally integrate power associated i>ith <br />I <br />any proposal; . <br /> <br />, evaluate the proposals or power supply <br />offers using pre-determined evaluation <br />techniques, tools, and methods; <br /> <br />. make resource acquisition decisidns; <br />and r <br />I <br />I <br />negotiate contract terms and conditions <br />for the replacement resource, ' <br /> <br />Seasonal (Short-term) Power <br />Replacement ' <br /> <br />I <br />Western's long-term firm po~er <br />customers will have the opportuni~ to <br />request replacement power for eaqh <br />upcoming season (twice per year).: <br /> <br />Evaluation of short-term purchase re- <br />sources will include consideration of <br />practical resource options that are capable <br />of supplying at least a portion of the <br />seasonal replacement power require- <br />ments. A consistent and unbiased eco- <br />nomic evaluation method will be used to <br />determine the least-cost alternatives. <br />Given the relatively short time between <br />evaluation of alternatives and purchase, <br />the evaluation process will consist of a <br />straightforward determination of the least- <br />cost option(s) through an open competitive <br />process. <br /> <br /> <br />Long-term Power Replacement <br /> <br />Western's firm-power customers will <br />periodically have the opportunity to <br />request long-term replacement power. <br />The number of these opportunities will be <br />limited, to recognize the time and resulting <br />administrative cost of soliciting and <br />evaluating bids. The timing of future <br />customer request opportunities will also <br />take into account how much replacement <br />power has already been obtained. Stan- <br />dard length purchases may be set by <br />Western in consultation with the custom- <br />ers. Examples of these terms include two <br />years, five years, or the remaining term of <br />the power sales agreement. <br /> <br />Long-term power replacement is <br />expected to involve a more extensive <br />formal RFP process and longer and more <br />detailed evaluations. An RFP including <br />standard contract terms and conditions <br />would normally be prepared before <br />Western begins an acquisition cycle. <br />Preparation of an RFP and contract <br />negotiation are important considerations in <br />the length and complexity of the acquisi- <br />tion process. <br />