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.. Section 2 Background system and links power resource allocations to preferen~e customers with long-term energy planning and efficient energy use through the preparation of IRPs. Western proposed to develop an EIS on this process on May I, 1991, and held public scoping meetings in June 1991. Western then developed alternatives to be studied in the EIS, which were discussed at public meetings during March and April of 1992. On October 24, 1992, the EPAct was signed into law, which requires that Western's customers prepare and implement Integrated Resource Plans (IRP). Section 114 of EPAct also specified that NEPA requires Western to complete an EIS on actions implementing IRP requirements for its customers. The proposed EPAMPprogram was modified as a result of passage of the EPAct in 1992 to fully incorPorate the Act's provisions. Western published the EPAMP-EIS on July 27, 1995. The ROD on EPAMP was published on October 12, 1995, 12 and the final program regulations were published on October 20, 1995.13 The first of the two major components of the program is the IRP Provision. This provision requires Western's long-term finn-power customers to. prepare IRPs, and includes a small customer exemption for customers with total energy purchases of less than 25 gigawatt- hours (gWh) per year. The second major component ofEPAMP is the Power Marketing Initiative (PMI). The ROD specifies that the extension period for contract aUocations will be 20 years from the current expiration date, with adjustments possible with a five-year notice to customers. However, required changes in operations may be implemented immediately, with any lost power being replaced by purchases of other resources until allocation adjustments can be made under the five-year notice provision. In addition, the PMI calls for establishing a. resource pool, with resource extensions initially including 96 percent of the current marketable resource. The customer IRP requirement provisions of EPAMP are now effective for all Western customers. The first IRPs for most SLCNIP customers were due to Western in November 1996. The PMI provision of EPAMP is initially effective only for the Loveland .Area Projects and the Pick-Sloan Missouri Basin Program- Eastern Division. Western has initiated consideration of applying the PMI to the SLCAI1P. Information about the process to be followed will be published in the Federal Register; 2.5.3 WESTERN'S PRINCIPLES OF IRP In June 1995, Western published its Final Principles of Integrated Resource Planning for Use in Resource Acquisition and Transmission Planning ("Western's Principles of IRP") in the Federal Register.14 The Western's Principles of IRP, developed in response to the EPAct, encompass the following concepts: 2-18 Western Area Power Administration March 1998