The power production from hydropower plants is used Vf 

 the utility owners to meet the requirements of their 

 customers. Undeniably, the people of the region have come to 

 expect the availability of electrical energy when they 

 require it. The dependability of hydropower generation 

 contributes greatly to the reliability of the region's power 

 supply. Hydropower plants such as Noxon Rapids and Kerr Dam 

 are also important for load control, which is necessary to 

 insure that the generating system responds to instantaneous 

 changes in the customer's demand for electrical power. 



The Northwest currently is capable of generating more 

 power, on average, than there is demand. This surplus may 

 not continue into the next century, however. In the 1986 

 Northwest Conservation and Electric Power Plan, the Northwest 

 Power Planning Council estimated that between 1990 and 1996, 

 the demand for power will exceed the region's generating 

 capacity, on average, and new generation capacity will be 

 required. 



Residential uses of power in the Northwest account for 

 approximately 36 percent of current regional power demand. 

 Industrial uses account for 39 percent of regional power 

 demand. Commercial uses demand 20 percent, and irrigation 

 power requirements account for most of the remaining 4 

 percent (NWPPC 1986) . In western Montana, industrial demand 

 for power accounts for 64 percent, residential 21 percent, 

 commercial 13 percent, and irrigation 2 percent (Bonneville 

 Power Administration [BPA] 1985) . 



Water for power production has contributed greatly to 

 the economic well-being of the region, as cheap hydroelectri- 

 city has been a significant factor in encouraging industry to 

 locate in the Northwest. Low energy costs help businesses 

 that provide much needed jobs to local areas, which in turn 

 allow the people who work and live here to enjoy the many 

 other qualities of the region. The existing hydroelectric 

 base contributes greatly to the comparatively low electrical 

 prices that exist in the Northwest. The capital cost to 

 replace the hydropower facilities of today with new thermal 

 plants could be eight to ten times more than the original 

 construction cost. Because the "fuel" for hydropower 

 generation is water, and the cost has not been subject to 

 price fluctuations, the region has enjoyed a large measure of 

 rate stability. This situation should continue in the future 

 to the extent that these hydropower developments are 

 maintained. 



The economic value of Clark Fork water used for power 

 production is difficult to measure because many factors are 

 involved. One way to measure the value of hydropower is to 

 estimate the cost of replacing hydropower generation with 



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