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commercial operation or due to unexpected poor performance. For each 

 simulation and each period within a year, SAM Identifies loads that will be 

 served and resources accordingly operated. The priority of serving load In 

 SAM Is: <1) firm load; (2) the DSIs' first quartlle; (3) storage outside the 

 region; and <4) Pacific Southwest markets. The DSIs' lower three quartlles 

 are Included In firm load; however, SAM recognizes that these loads can be 

 restricted under certain conditions. Resources are also stacked In a priority 

 determined by cost and operational considerations. The operating point of the 

 system In SAM Is where the benefits associated with serving each load block 

 equal the cost of operating the resources. The following assumptions were 

 used in modeling second quartlle restriction rights. 



1. In each of the 7 years 75 percent of the surplus firm power is 

 sold to the Pacific Southwest. 



2. Due to the Water Budget, Firm Energy Load Carrying 

 Capabilities (FELCC) is reduced by 500 average megawatts. 



3. For purposes of calculating a value for plant delay reserves, 

 only Federal generating plants are considered In this analysis. 



4. A 27 month delay in the construction schedule for WNP-1 and 

 WNP-3 is assumed for the value of reserves analysis. The planned initial 

 operating date for WNP-1 is September 1993, and March 1992 for WNP-3. 



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