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<br />ACOIlsistentandunbiased ~ <br />ecOIlomicevaluatiOll <br /> <br />method will be used to <br />determine the least;;ost <br />alternatives. <br /> <br />loog.termJXlwel' ~ <br />re~acementis expected to <br />involve a more extensive <br /> <br />fonnal RFP ~s and <br />1000ger and more detailed <br />evaluations. <br /> <br />Em <br /> <br />there wlil be no direct effect on Western's <br />base wholesale finn-power rate. <br /> <br />Acquisition Process <br /> <br />Replacement resources will be <br />acquired by followmg these technical <br />steps. <br /> <br />estImate replacement resource need; <br /> <br />establish eligibility and minimum stan- <br />dards for the power resource offered, <br />the entity offenng the resource to <br />Western, and the fmanciaJ and legal <br />obligations of Western; <br /> <br />de\'clop a request for replacement <br />power, which for longer-rem replace- <br />ments may uke the fonn of a fonnal <br />request for proposals (RFP); <br /> <br />compile responses to the request for <br />replact'ITlcnt power, and protect the <br />confidential information submitted In <br />proposals; <br /> <br />detennine the availability of trans mlS- <br />slon capacity to rehably and economi- <br />cally integrate power associated with <br />any proposal, <br /> <br />evaluate the proposals or power supply <br />offers using pre-determincd e\'aluation <br />techniques. tools, and methods; <br /> <br />make resource acqUisition decisions; <br />and <br /> <br />negotiate contract terms and conditions <br />for the replacement resource. <br /> <br />Seasonal (Short-term) Power <br />Replacement <br /> <br />Western's long-term firm power <br />customers will have the opportunity to <br />request replacement power for each <br />upcommg season (twice per year). <br /> <br />Evaluation of short-term purchase re~ <br />sources will mclude consideration of <br />practical resource optJOns that are capable <br />of supplying at least a portion of the <br />seasonal replacement power reqUIre- <br />ments. A consistent and unbiased eco~ <br />nOllllC evaluation method \\111 be used to <br />determme the least-cost alternatives. <br />Given the relatively short time between <br />evaluation of alternatives and purchase, <br />the evaluation process will consist of a <br />straightforward determination of the least- <br />cost option(s) through an open competitive <br />process. <br /> <br />Long-term Power Replacement <br /> <br />\Vestern's finn-power customers \\ill <br />periodically have the opportunity to <br />request long~term replacement power. <br />The number of these opportunities will be <br />limited. to recognize the lime and resulting <br />adrrunistrative cost of soliciting and <br />evaluating bids. The timmg of future <br />customer request opportunities \\ill also <br />take Into account how much replacement <br />power has already been obtamcd. Stan. <br />dard length purchases may be set by <br />Western in consultation \\ith the custom~ <br />ers. Examples of these tenns include two <br />years, five years, or the remaining term of <br />the power sales agreement. <br /> <br />Long-term power replacement is <br />expected to mvol\'c a marc e:\'1ensive <br />formal RFP process and longer and more <br />detailed evaluatIOns, An RFP includmg <br />standard contract terms and conditions <br />would nonnally be prepared before <br />Western begins an acquisitIOn cycle. <br />Preparatlon of an RFP and contract <br />negotiation are important consIderations In <br />the length and complexity of the acquisi~ <br />tion process. <br />