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<br />~ use of the seven.slale ~ <br />g e<lJraph~ span of <br />W estern's SLeMP <br />mar keting area, the proof. <br />of <OIIcelXillaJysis <br />in volved developing a <br />d elailed model of a large <br />pa rtoftheinlllrcoonected <br />el ectrical system in the <br />wes tem United Slates. <br />m <br /> <br />. <br /> <br />Calculate Jevelized <br />cost liS. <br />capacity factor <br /> <br />Shon-term <br />(Seasonal) <br />[laluatiun <br /> <br />I <br />. <br /> <br />I <br /> <br />Stand-lIlone <br />t:valuation <br /> <br />Rank proposals <br /> <br />Select higher <br />ranked proposals <br /> <br />.--- ---'----.-.- ----1---- ----- <br /> <br />'-- <br /> <br />Prepare integrated <br />analysis with <br />SlCAlIP system and <br />bulk power market <br /> <br />Ll)Il~-If"rm <br />["alualion <br /> <br />Calculate adjusted <br />levelized cost <br /> <br />Inlegnlfed <br />["alualioll <br /> <br />1 <br /> <br />Re-rank <br />proposals <br /> <br />1 <br /> <br />Combine amounts <br />and produce <br />supply curves <br /> <br />concept analysis involved developing a <br />detailed model of a large pan of the <br />interconnected electncal system in the <br />western United States, covering a large <br />pan of the Rocky ~Iounuin and Desert <br />Southwest regions of the United States <br /> <br />It was also necessary to identlfy data <br />sources accessible to \\.'estem. and to <br />gather, process, and Integrate a large <br />amount of data into the models. Data <br />acquisition and modeling ovcr such a large <br />are.:!. required a significant Investment of <br />hme and effort. bur produced mtegrated <br />modelmg tools which will form the basiS <br />for a useable resource analysis system. <br />TItis system will benefit Western and ItS <br />customcrs not only for the replacement <br /> <br />. <br /> <br />Figure 2: Evaluation of Proposals <br /> <br />dunng the replacement resource acquisi- <br />tion process. To prcpare this lest, an <br />extensive data gathering, analYSIS, model <br />development, and model Implementation <br />effoIl was undertaken. These tasks were <br />collectivcly referred to as the "proof-of- <br />concept" analysis <br /> <br />The goal of the proof-of-concept <br />analysis was to develop an mtegrated <br />system of models that could be used to <br />e\ aluatc proposals and to demonstrate <br />thcir use through examples. A detaJled <br />modclmg approach was required to <br />prO\idc accurate assessments of the value <br />of replacement resources. Because of the <br />seven-state geographic span of \Vestem's <br />SLeMP marketing area. the proof-of- <br />