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Background Many related processes and Western policies influence the Replacement Resources Process in addition to the unavailability of peak generating capability at Glen Canyon power plant. This section describes the key influences on the Replacement Resources Process, including an overview of the SLCAlIP and Glen Canyon Darn operations, historical events and prece- dents, a discussion of potential future operational changes, and other relevant policies and pro- cesses. The diagram below illustrates some of these key influences on the Replacement Resources Process. FERC Order ....888and881 Western and the SLCA Integrated Projects . Prlnclplee af Integrated Resource PlannIng Western is a power marketing administration within the U.S. Depart- ment of Energy. Its mission is to sell and deliver electricity from certain Federal water-project power plants, o\Wed principally by Reclamation. Western's Colorado River Storage Project (CRSP) Customer SeMce Center mar- kets power from the CRSP and other projects. The Glen Canyon power plant is the CRSP's largest power plant, with other major resources at Flaming Gorge Dam in northeastern Utah, and the Aspinall Unit in western Colorado. These generating facilities, collectively referred to as the SLCAIlP, are located on the Colorado, Green, Gunnison, and Rio Grande rivers, in Arizona, Colorado, New Mexico, Utah, and Wyoming. In addition to serving the electricity needs of the Reclamation projects, the SLeAlIP currently serves 13 8 wholesale power customers, including municipal utilities, rural electric cooperatives, federal and state agencies, and irrigation districts located in Arizona, Colorado, Nevada, SLCAI\P Contract Am8ndmenl Existinllspcit.Merkel . . Purehu811 : ". ." -' . .. . GOD OPii...dnll ::....'...~Ie....':., } ~ / f ~. Replacement /,:.". Resources . ~ Process / ~ ~ EPAMP-EIS RecG!'d of Declelan . . EPM;SS" ' RKorO -Of Decloilon . c-'. . .. . Recl.inauon'. . ..GCD'l!!iSll8eord .. ,,",,0acisI0ll' .- Figure 1: Influences On Western's Replacement Resources Process By Ottrer Related' Policies, Programs And Processes New Mexico, Utah, and Wyoming. Western's current contracts with firm power customers extend through the year 2004. Current power rates are approxi- mately two cents per kWh, or 20.17 mills per kWh. Customer reliance on SLCAI IP power varies, but about half of the customers receive more than twenty-five percent of their total energy requirements from the SLCAlIP. .