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<br />operation standpoint. However, any withdrawal of CRSP hydropower from the <br />Southern Division would have adverse impacts on Western's present CRSP <br />customers in Arizona and Nevada. While Western believes that no legal <br />bar exists to the total withdrawal of CRSP firm power from the Southern <br />Division, such a proposal would most likely give rise to a legal challenge <br />by the adversely impacted entities. <br /> <br /> <br />Recognition of the economic dislocation that would result from a total <br />withdrawal resulted in a compromise proposal for adjusting existing allo- <br />cations. If a total withdrawal of the CRSP firm resource from Nevada and <br />Arizona'were to take place, the resulting rate increase to Western's cus- <br />tomers in those States could be expected to range from, 1 to 58 percent, <br />depending on a particular utility's resource mix. The rate increase for <br />the most representative customers (those with an auxillary power require- <br />ment of 85 percent) could be expected to range from 9 to 20 percent, <br />depending on the amount of non-CRSP Federal power available to the uti- <br />lity. Such an increase in price could be expected to concern the Southern <br />Division customers, to the extent that they might seek legislative relief <br />from such an action. <br /> <br />The September 1984 proposal exercises Western's authority to adjust the <br />amount of the CRSP resource allocated to the Southern ~ivision and pro- <br />poses an adjustment that reduces Southern Division allocations by <br />55 MW in the summer and increases the winter allocations by 26 MW. This <br />compromise proposal was based upon preserving the spirit of the allocation <br />that was made in 1962 while recognizing changing conditions. The Northern <br />Division seasonal load diversity in the 1960's was a key factor in finali- <br />zing the 1962 criteria. Current load studies indicate that this diversity <br />no longer exists because of changed load patterns in the Northern <br />Division. The loss of this diversity in the Northern Division was the <br />primary basis for making the proposed adjustment in Southern Division <br />allocations. <br /> <br />Table 3 displays the amounts of long-term energy with power that would be <br />offered (or set aside for Federal use), by season and division under the <br />September 1984 proposal. <br /> <br />In summary, under the September 1984 proposal, the Southern Division would <br />be offered the following percentages of the available resources: <br /> <br />Summer <br />M ~ <br />15.1% 14.3% <br /> <br />Winter <br />MWh MW <br /> <br />8.7% 8.3% <br /> <br />No increases in the available long-term power from federally financed <br />resources in the Northern Division are expected in the post-1989 contract <br />period. Comparisons between the amounts of CRSP long-term energy with <br />power available for allocation and the existing CRSP contract commitments <br />are shown in Figures 5 and 6 for each Division. <br /> <br />17 <br />