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<br />" <br /> <br /> <br />I. EXECUTIVE SUMMARY <br /> <br />Purpose and Scope <br /> <br />This report has been prepared for Congress in accordance with requirements <br />in Section 108 of the Hoover Power Plant Act of 1984 (Public Law 98-381). <br />Section 108 requires that the Secretary of Energy, acting by and through the <br />Western Area Power Administration (Western), report to Congress on all <br />Colorado River Storage Project (CRSP) power resources which may be used to <br />financially support the development of authorized projects in the States of <br />the Upper Division of the Colorado River: Colorado, New Mexico, Utah, and <br />Wyoming. The States of the Upper Division are referred to as the Upper Basin <br />States in this report. <br /> <br />The scope of this report is designed to respond to Section 108 requirements, <br />to aid Congress in its decisionmaking, and to give recognition to the concerns <br />of interested parties. The report, accordingly, identifies the available CRSP <br />power resources and the authorized projects, explores methods for developing <br />additional revenues, and identifies methods of obtaining capital for construc- <br />tion of authorized projects. <br /> <br />Power Resources and Power Market i ng <br /> <br />Available CRSP resources after 1989 include six hydroelectric powerplants with <br />installed capacity of 1,691 megawatts (MW), all located in the Upper Colorado <br />River Basin. Power from these plants is sold pursuant to the CRSP General <br />Power Marketing Criteria published in the Federal Register. The marketing <br />criteria are subject to change, upon public notice and with the opportunity <br />for comment provided to interested parties. Western is presently engaged in <br />a public process to develop new marketing and allocation criteria for CRSP and <br />three small projects. <br /> <br />The Northern and Southern Divisions of the market area for the marketing of <br />power from these Upper Colorado River Basin powerplants extend considerably <br />beyond the Colorado River Basin. The Northern Division encompasses the Upper <br />Colorado River Basin and beyond, while the Southern Division encompasses the <br />portions of the Lower Colorado River Basin in Arizona and Nevada and includes <br />additional areas in Nevada. A limited amount of CRSP power is marketed in the <br />Southern Division. <br /> <br />A compromise has been proposed for the post-1989 CRSP power marketing criteria <br />which reduces Southern Division allocations by 55 MW in the summer season and <br />increases the winter season allocations by 26 MW. There are a few Northern <br />Division customers who advocate that power be withdrawn from the Southern <br />Division. However, the compromise proposal preserves the spirit of the origi- <br />nal 1962 allocations while recognizing the changing conditions. Under the <br />September 1984 proposal, the Northern Division would be offered 1,040 MW of <br />firm power in the summer season and 1,229 MW of firm power in the winter <br />season. The Southern Division would be offered 210 MW of firm power in the <br />summer season and 119 MW of firm power in the winter season. Power rates <br />(mills per kilowatthour) are the same for the Northern and Southern <br />Divisions. The total revenue that accumulates is independent of the distri- <br /> <br />1 <br />