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<br />Agenda rtem l6 <br />September 22. 1989 <br /> <br />The Colorado River Energy Distributors Association (CREDA) has <br />taken a similar position (see the enclosed August 23. 1989. <br />letter). These two letters cover the major reasons which have <br />been cited by a number of parties as to why it is <br />inappropriate. perhaps even illegal. to implement interim <br />operations prior to the completion of the EIS process. <br /> <br />In a related matter. the Western Area Power Administration <br />(Western) has just announced that it will undertake an <br />environmental impact statement on its Post-1989 Power Marketing <br />Criteria. Those criteria were promulgated by W~stern three <br />years ago. They established the procedures for determining the <br />availability of and allocating the Colorado River Storage <br />Project hydropower resource to potential customers when the <br />original 25 year contracts for CRSP power run out in October. <br />1989. <br /> <br />FOllowing the promulgation of the criteria. Western was <br />sued by Utah Power and Light Company and approximately lSO <br />cities and counties in Utah and Wyoming in October. 1986. in an <br />action filed in the Utah Federal District Court. Motions were <br />filed for summary judgment on all but three issues in the <br />cases. Those motions were decided in Western's favor in April. <br />1988. <br /> <br />One of the issues not addressed by the motions was whether <br />an ErS should have been performed before the criteria were <br />promulgated. After the April. 1988. decision. Western and the <br />plaintiffs reached a tentative settlement on this and the other <br />remaining issues in the case, Apparently fearing that a <br />settlement would moot the Ers issue. the National Wildlife <br />Federation filed a separate suit against Western in December. <br />1988, alleging the very same issues which were still pending. <br />and the subject of the tentative settlement. in the case <br />originally filed by Utah Power and Light. The court <br />subsequently consolidated the two lawsuits and they were set <br />for trial next week. <br /> <br />How the ErS on Glen Canyon Dam power operations and the Ers <br />on Western's Post-1989 Power Marketing Criteria will fit <br />together is a major unknown at this point in time. Suffice it <br />to say that these two studies will be of the utmost importance <br />to Colorado as they proceed. <br /> <br />Recommendations <br /> <br />I recommend that the Board: <br /> <br />-2- <br />