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<br />Background <br /> <br />Section 2 <br /> <br />Western is working on rules and procedures for the tariffs and intends to file them once <br />customer consultation is complete. Meanwhile, the respective customer service regions <br />will give. WRTA information on their existing wheeling contracts and submit current <br />prototype contracts plus rates. . The CRSP Customer Service Center, along with its <br />customers, will decide how to develop the comparability tariffs and will review the history <br />and basis for the establishment of available transmission capacity (ATC). ATC is the <br />portion of the Federal transmission system that is surplus to committed uses and may be <br />made available to transmission requesters. ATC is also important for non-discriminatory <br />, tranSmission access considering the RTAs' obligations and"FERC's open-transmission- <br />access order. <br /> <br />The initial focus of the CRSP Customer Meetings was a Western briefing on its <br />determination of ATC on the CRSP system. Customer involvement in developing <br />comparable CRSP transmission tariffs was also requested, to include contract terms and <br />conditions and transmission rates. Once finalized, these tariffs will be made available to <br />other members of the RTAs. <br /> <br />2.4.3 TRANSMISSION ACCESS AND POWER MARKETS <br /> <br />The implementation of FERC Order 888 will allow increased transmission access, which <br />will provide more options for power supply, including non-utility power suppliers such as <br />power marketers, traders, and IPPs. The increased number and diversity of options in <br />power supply should also increase competition and lower prices. <br /> <br />As a transmission provider and an entity purchasing power, the SLCNIP will experience <br />the effects of changed transmission access policies from both perspectives. Western is <br />receiving new requests for transmission service on the CRSP transmission system, for <br />which it must determine whether or not there is ATC., Its determination must account for a <br />number of factors relevant to ATC, including the highly variable pattern of hydroelectric <br />generation experienced over the years and the need to purchase varying amounts of <br />replacement power from different suppliers. To ensure that the most cost-effective sources <br />of replacement power can be utilized, the CRSP transmission system must retain adequate <br />capacity, which may be jeopardized if the determination of ATC does not anticipate the <br />location and amount of replacement power purchases. <br /> <br />While the transmission requirements of replacement power may complicate the <br />determination of the CRSP system's ATC, it will likely improve the overall availability and <br />pricing of replacement power to Western. Increased transmission access will allow many <br />utility systems with surplus power, but without direct transmission interconnection to the <br />CRSP system, to respond to Western's RFP if transmission capacity is available on <br />intervening systems, as the pricing and other terms of transmission service will be known. <br />Likewise, it will allow power marketers to act as intermediaries in offering replacement <br />power to Western from a variety of electric systems and non-utility generators. <br /> <br />March 1998 <br /> <br />Western Area Power Administration 2-15 <br /> <br />