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ThereisnoimplicatiO/lltial ~ power made unavailable alGlenCanyonOammust I berejlacoo megawatt.fur. I em!9awatt Itiroogh 1009' !term cormilmenls. t ,'~ t1nSlead, western has agreed wiltills CtIstomers ltialre~acemenlj:llwer will be offered on an established scl1edule, lbasedonlndividu~ CtIsto1rer requests, and acquired comfEtitiv~y. fa Resource Acquisition F OUT main pnnciples will guide Western's replacement reSOUfce acquisition: (I) least cost, (2) rate reasonableness [0 \Vestem'$ customers. (3) an appropriate level of pub he review, and (4) process documentation 1ltis section describes hoy.' Western intends to approach the acquisition of replacement resources General Approach Potential replacement power re- sources might include a ....ide range of altematJ....es. These alternatives could include long-term firm power purchases, lease or o",nership-Iike entitlements in one or more specific generating units. long- term power exchanges, long-term integra- tion agreements ,..ith other federal hydro- electric projects, and possibly new or upgraded power transmission facilities. However, there is no implication that power made unavailable at Glen Canyon Dam mu.st be replaced megav,:an-for- mega wan through long-term commit- ments Instead, Western has agreed \\'ith its customers that replacement power \\ill be offered on an established schedule. based on mdividual customer requests. and acquired competinvely. Based on provi- sions of the agreement, Western \\ ill consult \\ith Its customers to define the amount and tinung of replacement power as pan of\.....estern.s finn-power markct- ing program through thc term of the power sales agreements, including a potential tenn extension. The trade-.off for allO\\mg customers to select the amount of replacement resource they need is the requirement that they finanCIally comnut to theIr proponion- ate share of the costs associated mth the replacement resource At least for the term of the current power sales agree- ments. 'Western will implement the process by which replacement power may be acquired. but the customers ""ill determme the level of resource purchases by Western. Any combinauon of bUilding new resources, leasing existmg resources. or purchasing or exchanging power from others are potential candidates to replace Glen Canyon resources. However. surplus generating capacity in Western's marketing area. coupled \\ith the ongoing restructuring and deregulation In the electric utility industry, have made the purchase of power from others a \iable, low-cost option now and for the foresee- able future. Moreover, through its own transmission facilities and entitlements in other systems, \Vestern has extensive access to the bulk power market in the Intermountain and Desert Southwest regIOns of the western United States. The specific characteristics (eg_. type, cost, location. etc.) of prospective replacement resources ,\-'ill be Important later in the implementation phase of the acqUIsition process, so the acquisition methodology dcscnbed m this report was deSigned to account for a variety of pOlentiaJ resource characteristics. Customer Power Needs Western's firm power contracts limit the ma.XJrnum amount of power that Western may be requested to replace This maximum amount of replacement power is the difference between Western's total firm load obligation and hydroelectric power avaIlability. However, mdi\idual customers may request that all.