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<Section 3 Polic~ Issues and Assumptions . Hoover power is scheduled by its customers and their entitlements and rights are based on its actual output. Therefore, customers would have to agree to any changes in Hoover powerplant operations that could affect these contractual rights. . Regulation benefits could potentially be inqreased. . Hoover customers schedule large amounts! of spinning reserves and have rights to those reserves. . Currently Hoover's operating restrictions place few constraints upon the scheduling of its power output, except for the fact that its energy potential is governed by water release requirements and .110tby power requirements. This is likely to c~ge in the future due to tile constraints being placed on Lake Mojave, and lake-level fluctuations may nqt be allowed for periods of up to six months. Such constraints would degrade tfoover's hydraulic capacity, thereby severely limiting its peaking capability. . Contractual differences between the Boulder Canyon Project and SLCAIIP may be difficult to reconcile, or may place constraints upon the scheduling of the. projects. . Transmission constraints and losses coul4 outweigh power benefits obtained due to diversity in loads and power schedujing. . It would be very difficult to measure th~ benefits and losses resulting from integration, and determine to whom those penefits or losses should flow. Such issues have been a matter of dispute among Hoover contractors for many years. 3.3.2.4 SUMMARY Western reviewed the findings of previous studies performed by Western and Reclamation on integrating Hoover and GCD. These studies iPdicate. that while. some efficiency improvements are possible from integration, institutional and physical barriers make realization of these efficiency improvements a difficult and complex task. At the present time, integrating Hoover and GCD does not appear to be a feasible method for replacing lost capacity at GCD. However, Western will continu~ to monitor, and participate in when appropriate, ReClamation's future investigations ofpo~er plant integration. 3.3.3 ENVIRONMENTAL COMPLIANCE Western will comply with the National Environmental ,Policy Act of 1969 (NEPA) through an appropriate level of environmental analysis on the i1npacts of any proposed replacement resource. Western will also ensure that replacement powe~ acquisition is consistent with the Council on Environmental Quality Regulations! for Implementing the Procedural Provisions ofNEPA, and DOE policy and regulations} At the present time, Western does 3-8 Western Area Power Administration March 1998