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<br />EPAct, offers gUidelines that Western will <br />apply in evaluating replacement resources. <br />To the extent that Western acquires <br />replacement power at the request of <br />mdi\.idual customers, this policy will also <br />provide consistency between Western's <br />replacement power acquisition process <br />and the customer's IRP. <br /> <br />Key Policy Issues <br /> <br />After the public comments recel\'ed <br />during the public consultation phase of the <br />Replacement Resources Process were <br />analyzed, certain fund3JT\ental policy <br />issues were addressed by Western as pan <br />of the process of developmg a useful and <br />focused Methods Repon. <br /> <br />SnUTF.GIC COAI_'i: The pnmaty concern <br />to \Vestern's SLeMP customers \\ill be <br />the cost competitiveness of potential <br />replacement resources relative to other <br />power opttons available in the new, more <br />competitive, wholesale pO\"'er market_ <br />The primary goal of the Replacement <br />Resources Process and this Methods <br />Repon is to comply WIth requirements of <br />Section 1809 of the Grand Canyon <br />Protection Act that called for "establlsh- <br />mg methods to acquire replacement <br />power resources at a cost to its firm <br />power customers that is competitIve in <br />the market." Western's Principles of IRP <br />also dictate that potential replacement <br />resources be evaluated In a fair and <br />eqwtable manner. <br /> <br />In identtfying acceptable methods for <br />acquiring replacement power, the analYSIS <br />maintained a focus on the following <br />strategic goals: <br /> <br />comply \\ith the GCP Act, <br /> <br />comply ,..ith the CRSP Act and related <br />legal mandates; <br /> <br />adhere to Western's PnnClples of IRP; <br />and <br /> <br />obtain least-cost replacement power for <br />\Vestern's customers. <br /> <br />OTHER RElATED Issn:.s: Other key policy <br />issues that were considered In the analysis <br />included: <br /> <br />the potential for future resource integra- <br />tion ,..ith Hoover Dam and Power <br />Plant; <br /> <br />the nature of the resource evaluation <br />critena regarding acceptable technolo- <br />gies; <br /> <br />the possible treatment of external costs, <br />or externalities, in the evaluation <br />process; <br /> <br />the treatment of transmlssion.related <br />conunitments and constralllts; <br /> <br />the consideratIOn of energy efficiency <br />efforts by Western for loads under its <br />controL <br /> <br />the appropriate planning horizon for <br />consideration of replacement resource <br />opttons; and <br /> <br />the level of future public involvement <br />and emironmental compliance in the <br />methods implementation stage. <br /> <br />It IS possible that additional strategIc <br />goals or guidelines for replacement <br />resource acquisition may be conSidered in <br />the future based on other agency or <br />departmental policy mandates. <br /> <br />~ ThepimarygoaJoflhe <br />Repac~ntResoun:es <br />Process and Ihis Melhods <br />Reportis tocomplywith <br />requirements of Section <br />1S09oflheGrand Canyon <br />Protection Actlhatcalled <br />for 'estabf~lingmethods <br />tDatquirereplacement <br />power resources at a cost <br />tD its fil17l power CUSlDmers <br />thatiscompe5tiveinthe <br />marl<et" <br /> <br />~ Westem'sPrinci~esofiRP <br />also dictatelhat pote1tial <br />re~a;:emenlresources be <br />ev~uated in a fair and <br />equitab~ manner. <br /> <br />m <br />