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<br />Background <br /> <br />Section 2 <br /> <br /> <br />r <br /> <br />Resource Acauisition Princioles: <br /> <br />. Consider a broad range of supply-side, demand-side, and renewable <br />resource options <br /> <br />. Use a public process <br /> <br />. Develop resource evaluation criteria addressing resource cost, <br />environmental impact, dependability, dispatchability, risk, diversity, and <br />DSM verification <br /> <br />. Develop evaluation criteria to allow for maintaining the lowest possible <br />customer rates consistent with sound business principles <br /> <br />. Ensure that resource acquisition planning is consistent with power <br />marketing plans and associated contractual obligations <br /> <br />. Document resource acquisition decisions and make available to customers <br />and the public <br /> <br />Transmission Planninll Principles: <br /> <br />. Conduct early and wide public involvement <br /> <br />. Describe the transmission need and develop alternative methods for <br />meeting the need <br /> <br />. Evaluate reasonable alternative methods for meeting the need using cost, <br />general environmental impacts, and system reliability <br /> <br />. Make results of the preliminary evaluation available to the public <br /> <br />. ProCeed with NEPA analysis, using data from preliminary analysis <br /> <br />These principles are guidelines for the Replacement Resources Process. Appendix A <br />contains a complete copy of Western's Principles oflRP. <br /> <br />r <br /> <br />I <br />, <br /> <br />2.5.3.1 ApPLICATION TO RESOURCE REPLACEMENT <br /> <br />As described in its October 1994 Replacement Resources Process Information Packet, <br />Western will apply these Principles of IRP in the evaluation of replacement resources. As <br />part of its integrated resource planning approach to identifying cost-effective replacement <br />resources, Western will consider non-renewable conventional resources, as well as <br />renewable resources and energy efficiency measures. Another important aspect of the IRP <br />approach will be inclusion of the effects of resource type and location on Western's <br />transmission system and overall system reliability. <br /> <br />However, Western's resource acquisition process will not be based on, nor be the <br />equivalent of, a typicalIRP. The resource acquisition process will be guided by Western's <br />agency-wide Principles of IRP. Goals and objectives for the Replacement Resources <br /> <br />March 1998 <br /> <br />Western Area Power Administration 2-19 <br />