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Flexibility: key factor in Western's repayment

Under ideal circumstances, water conditions would remain constant, equipment would be replaced precisely at the end of its service life and operations and maintenance crews would not have to deal with the results of earthquakes, tornadoes, droughts, ice storms and other phenomena that affect generation and transmission system components. Revenues and expenses would remain relatively constant. However, our world is dymanic, not constant. We respond to these changing conditions through our flexibility in repaying the Federal investment in power and irrigation facilities.

For example, annual repayment studies allow Western to determine the revenues needed to meet our statutory requirements of repaying Federal power investments with interest while keeping wholesale hydropower rates as low as possible, consistent with sound business principles.

Using flexible provisions in our power sales contracts, we have the ability to adjust power rates through a public process, in compliance with DOE's Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions (10 CFR Part 903). Customers can also opt out of their contracts if they don't like the rate change.