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<br /> <br />Section 1 <br /> <br />Introduction <br /> <br />Appendix A of this report contains the newsletter updates distributed during Phase 2 of the <br />Replacement Resources Process. <br /> <br />1.2.3 "PHASE 3 . IMPLEMENTATION OF ACCEPTABLE METHODS <br /> <br />Phase 3, the "linplementation of Acceptable Metho$" for the Replacement Resources <br />Process, is expected to be influenced by: <br /> <br />· the provisions of the amended long-term firJn electric service contracts between <br />Western and the SLCA/IP wholesalefirJn-power customers (Amended <br />Contracts); <br /> <br />· the nature of SLCA/IP hydroelectric facility operational constraints and <br />forecasted hydropower availability; and <br /> <br />· subsequent decisions by Western's custom\lrs on the magnitude and timing of <br />their replacement power needs. <br /> <br />As stated in the Amended Contracts, post-1989 allocations begin in April 1997. Short- <br />term replacements will begin one year later in April .1998, with long-term replacements <br />following two years after that. Until short-term replacements begin, Western expects to <br />supply the firJn-power customers entire contract rate of delivery (CROD) through <br />SLCA/IP resources and firming purchases. The decision process for subsequent recurring <br />implementation of replacement power acquisitions wiJ1 be influenced by provisions in the <br />Amended Contracts, the methods defined in this repo~ and other conditions at that time. <br />These influences are discussed in more detail in Section 4. <br /> <br />1.3 REPORT ORGANIZATION <br /> <br />The following paragraphs describe the overall organization and contents of this report. <br /> <br />Section 1 (Introduction) describes the purpose of t\te Methods Report and Western's <br />Replacement Resources Process. . , <br /> <br />Section 2 (Background) includes information on West"rn's SLCA/IP resources and loads, <br />and additional studies, processes and policies relevant to the Replacement Resources <br />Process, <br /> <br />Section 3 (policy Issues and Assumptions) describes, policy and program issues, overall <br />assumptions, and key external issues related to resourc~ replacement. <br /> <br />Section 4 (Resource Acquisition Process) describes the methods to be used for potential <br />replacement resource acquisition, including evaluation criteria and methodology, analytical <br />tools, and a format for requests for replacement power. <br /> <br />Section 5 (proof-of-Concept Analysis) descriQes and demonstrates the implementation of <br />the principal analytical tools for replacement resource: acquisition described in Section 4 <br /> <br />1-6 <br /> <br />Western Area Power Administration <br /> <br />March 1998 <br />