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feasible methods for replacing lost Glen Canyon power and preparing the Methods Report, ~ PHASE 2 - IDENTIFICATION OF ACCEPT- ABLE METHODS: This phase ofthe process began in January 1995 with the analysis of public comments received during Phase I, the identification of technical issues, and the formulation of key policy issues and refinement of the process goals and objectives by Western, , Western kept key stakeholders informed of its process in developing the replacement resource methods through newsletters mailed in February and October 1995. By early 1996, Western had developed modeling methods and a proof-of-concept analysis. Based on these efforts, Western published a Draft Replacement Resources Process Methods Report (Draft Report) for public review and comment in July 1996. A Federal Register notice was published on July 2, 1996 (61 FR 34433) providing notice of both the availability of the Draft Report for public comment and a series of planned public meetings in Albuquerque, Denver, Phoenix, and Salt Lake City. A copy of the Federal Register notice was mailed to the 900-plus individuals and organizations on the Replacement Re- sources Process mailing list. A 60-day comment period on the Draft Methods Report closed on September 3, 1996. Approximately 40 interested individu- als and stakeholders attended the second round of public meetings. They included representatives from environmental organizations, firm electric power custom- ers, state and Federal (including Depart- ment of the Interior) agencies, and various utilities and power marketers interested in supplying replacement resources. Stake- holders were also encouraged to submit written comments. Seven comment letters were received. Overall, conunents supported Western's approach to develop- ing the Draft Methods Report. Western mailed an additional newsletter which summarized the comments received in December 1996 to the 900-plus individuals and organizations interested in this pro- cess. The Methods Report documents only the feasible methods for evaluating power supply alternatives to replace the generat- ing capability made unavailable at Glen Canyon Dam. The actual solicitation, evaluation, acquisition, and integration of replacement resources by Western will occur later, in the implementation phase of the process. It will be based on the final long-ternl operating criteria of Glen Canyon Dam, the total marketable re- source available from the SLCAlIP, and customers' replacement resource de- mands. As these and other factors may influence the SLCAlIP hydropower resource in the future, the Methods Report identifies economically and technically feasible nlethods appropriate to a wide range of potential future replacement resource needs. PHASE 3 - IMPLEMENTATION OF ACCEPT- ABLE METHODS: The final phase of the Replacement Resources Process will be to implement acceptable methods for replacing "lost" resources. Several factors may influence resource acquisition, including the provisions of the amended long-term firm electric service contracts between Western and the SLCAlIP wholesale firm power customers, the nature of SLCAlIP hydroelectric facility operational constraints and forecasted hydropower availability, and subsequent decisions by Western's customers on the magnitude and timing of their replacement power needs. B