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<br />, <br /> <br />. FEB 0S '90 17:33 <br /> <br />III. Bffects on Econoaic Balances <br /> <br />Economic balances in this section not only relate the <br />economics of recreational and non~use values of the Canyon to <br />power economics, but to the actual and potential operations of <br />the dam. The effects of changes in dam operations on power <br />economics is being studied by the Power Economics Team. Use <br />benefits of downstream recreation was studied in GeES Phase I but <br />should be reestimated. <br /> <br />A. Power Economics <br /> <br />13. Question: If creating a more stable environment in the <br />canyon below Glen Canyon Dam requires changes in power <br />operations, what is the economic impact ot these changes? <br /> <br />~-13.1. Changes in operations will not result in <br />significant economic losses associated with power production. <br /> <br />Justification: The amount of energy available from a hydro <br />project is largely a function of the hydroloqy in the basin. <br />Changes in operations are very unlikely to have an impact on <br />the amount of enerqy available. Changes in operations may, <br />however, have a substantial impact on the temporal pattern <br />(both daily and seasonal) of power production. The changes <br />in temporal production patterns may result in changes in the <br />value of the energy produced. <br /> <br />Information MeedS: A method to estimate the change in the <br />value ot power caused by a change in the operations at the <br />d~ 1s needed. This method must be consistent with the <br />principles and Guidelines and current economic practice, and <br />must be able to address a wide variety of operational <br />c~anges. The GeES Power Economics Team is currently <br />preparing a report containing recommendations as to which <br />method or methods should be used. <br /> <br />B. R.creBtional Economics <br /> <br />14. Question: Are the economic benefits of downstream <br />recreational activities affected by dam operations? <br /> <br />~-14.1. The economic benefits of downstream recreational <br />activities as well as associated tourism services (e.g., lodging, <br />airlines, restaurants, etc.) are not affected by operations of <br />Glen Canyon dam. <br /> <br />Justification: During GeES Phase I, extensive surveys of <br />downstream recreationists were conducted. These surveys <br />demonstrated a relationShip between economic benefits and <br /> <br />16 <br />