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<br />WestErnhistoricaJlyhas ~ <br />had an open access policy <br />foritslransmissiOll <br /> <br />systmL <br /> <br />Ini'igralEd ResouJai ~ <br />Planning takes traditional <br />;resOOJai ~a~ning and <br />!expands it to consider ltJe <br />overall effects a full range <br />of alternatives would have <br />onltJe total po~r system, <br />dnduding irnpactsto ltJe <br />em;ronmenl reI~lJjlity, <br />dispalthalility,iildfuel <br />dimity, <br /> <br />and other facilities, either by Western <br />(Wesfern Replacement Po....er or WRP), <br />or by individual customers (Cuswmer <br />Dlsp/acemenr Po......er or COP). <br /> <br />Western expects to acquire replace- <br />ment power on behalf of SLCA/IP <br />customers on a pass-through-cost basis on <br />either a shon-term (seasonal) basis or on <br />a longer-teml (one to three years or <br />longer) basis Based on the pnce of \\'RP, <br />individual firm power customers can <br />request \Vestern make the purchase, or <br />they can decline the offer. Customers <br />may also procure thelr O\\l1 replacement <br />power (COP) and Western may deliver <br />that power, subject to available transmis- <br />sion capacity on \Vestern's transmISSion <br />system. <br /> <br />One critical issue which arises IS the <br />importance to Western of obtaining a <br />lcast-cost replacement power resource <br />mix. Customers will decide either to <br />request WRP or to obtain their O\\TI <br />replacement power (COP), pnmarily on <br />the basis of the \VRP's cost competitive- <br />ness. <br /> <br />Energy Policy Act and FERC <br />Orders 888 and 889 <br /> <br />Western historically has had an open <br />access policy for ItS transmission system. <br />Western tS not a federally~regulated utillty <br />under the Federal Power Act. but Its <br />power and transmission rates are subject <br />to re\;ew by the Federal Energy Regula- <br />tory Commission (FERC), and it is subject <br />to the open access pro\~sions of the <br />Energy Policy Act (EPAct) of 1992, <br /> <br />Pnor to enactment of the EPAct. <br />FERC's authority to order an electric <br />utility to prO\;de transmission senlce was <br />extremely limited The EPAct prO\;ded <br />authority to FERC to order transnusslOn <br />sen.ice in the mtcrest of maximizing <br /> <br />efficient use of transmission and genera- <br />tion, at rates that arc compensatory. This <br />expands FERCs authont). to other <br />entities, mcludmg Western. and IS causing <br />profound changes to translUlssion access <br />and pncmg. as well as to the structure of <br />the entire eleetnc indus!r)' The most <br />recent result of the EPAct has been <br />FERC Ocders 888 and 889 (ApnI1996) <br />concerning open transmission access on <br />the nation's electrical grid In response to <br />these rules, utilities are proposmg Indepen- <br />dent System Operators (ISO) to operate <br />the transmission grid. regional transmiSSion <br />groups, and developing open access same- <br />time information systems (OASIS) to <br />Infonn all potential transmission customers <br />of the available capacity on their Jines. <br />Western plans to comply with the pnn- <br />clples of both orders. <br /> <br />Integrated Resource Planning <br /> <br />TIle EPAct also reqUIres Western's <br />long-term finn power customers to do <br />Integrated resource planning (IRP)_ This <br />comprehensive planning approach takes <br />traditional resource planning (typically <br />limited to matching loads and supply-side <br />resources) and expands it to consider the <br />o\'erall effects a full range of alternatives <br />would ha\'e on the total power system. <br />Including Impacts to the em'lronment, <br />rellabih~., dlspatchability. and fuel diverSity. <br />Demand-side management (energy <br />conservation) is another pan of the <br />mtegrated approach to resource planning. <br />in general. the pnnclples of the IRP <br />process used in makmg resource acqUIsI- <br />tions are least-cost, consideration of all <br />system impacts. nsks. and en\lronmental <br />effects; and public partiCipation. <br /> <br />Western's Pnnciples of IRP, pub- <br />lished in June 199j' In respon..<;e to the <br /> <br />. Final Plindplrs of InlrJ!nHrd Rrsuuru <br />Phtnnin~ for Usr in ,\ctjuisilinn and Transmi.<- <br />sinn Planninc:. (60 rn J053J-J05J5), Western <br />Ale... Power AdminIstratIon, dllted June 9. 1995 <br />