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<br />,- <br /> <br />J <br /> <br />01441 <br /> <br />customers with considerable influence tend to support their local USSR projects. Given <br />the political and bureaucratic environment that most CRSP managers deal with, one <br />must give them credit for at least keeping most of the farm intact for so many years. <br />Some examples gleaned from discussions with USSR and WAPA employees are briefly <br />discussed below: <br /> <br />Loveland's use of CRSP diversity <br /> <br />CRSP customers' firm allocations are used to peak-shave for the benefit of other <br />Federal projects and private interests (Rocky Mountain Generation). CRSP has <br />objected to this practice by Loveland. However, Loveland's influence within WAPA has <br />successfully negated CRSP's concerns. Loveland's use of CRSP capacity cost CRSP <br />because CRSP could have used the resource for its own surplus marketing activities. <br />The revenue stream form this CRSP activity would be used to reduce CRSP financial <br />requirements. <br /> <br />Phoenix use of CRSP firming capability <br /> <br />CRSP was used to firmup the marketability of the Parker-Davis project in the '70s, '80s, <br />and early '90s. Restrictions at Glen Canyon stopped all CRSP and Parker -Davis <br />firming activities. As a Result Parker-Davis for the first time in Project history had to <br />buy power from third parties. Compensation from Parker-Davis to CRSP was never <br />adequate for the resources provided from CRSP. <br /> <br />CRSP regulation capacity use by Loveland <br /> <br />Control area services provided to Loveland Area Projects (LAP) started in the '70s and <br />continue today. Loveland aggressively markets LAP on the Front Range. LAP also to <br />improve its marketability integrates its capacity and energy with Tri-state and Rocky <br />Mountain Generation Cooperative, Inc. The LAP hydroelectric system characteristic <br />are small reservoirs with limited use (time) electric capacity. As a comparison, CRSP <br />was designed with large reservoirs and capacity that could be used over longer period if <br />needed. Therefore, LAP needs capacity support to meet its obligations. It does not <br />pay CRSP for this support. <br /> <br />It is expected that with WAPA's new organization this support will continue and most <br />likely increase. Under WAPA's plan Loveland will now control CRSP's transmission <br />system thru the Four Corners area and have all CRSP's Northern Division hydroelectric <br />plants under its control. <br /> <br />The revenue loss to CRSP can be approximated using 75 MW of regulating capacity <br />used by Loveland at $3.90 KW/month. The loss per month would be 75 MW times <br />$3.83 times 1000 and would equal $287,250, or for 12 months $3,447,000 per year. <br /> <br />5 <br />