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Conn. v. American Electric, Memo in Support of Motion to Dismiss ...

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protect<strong>in</strong>g environmental quality” and the decision process “<strong>in</strong>tegrated economic development<br />

and environmental goals.” Id. at 7,573-7,574. As summarized <strong>in</strong> the Record <strong>of</strong> Decision:<br />

Id. at 7,573.<br />

The primary analytical method used for Energy Vision 2020 was the<br />

multi-attribute trade<strong>of</strong>f method. This approach allowed TVA <strong>to</strong><br />

quantitatively <strong>in</strong>tegrate the identified environmental impacts <strong>of</strong> proposed<br />

energy resource strategies and <strong>to</strong> formulate alternative strategies <strong>to</strong> mitigate<br />

adverse environmental impacts while reta<strong>in</strong><strong>in</strong>g other beneficial<br />

characteristics <strong>of</strong> specific strategies.<br />

Energy resource strategies are created from different comb<strong>in</strong>ations <strong>of</strong><br />

energy resource options. Energy resource options are either supply-side options<br />

(e.g., new generat<strong>in</strong>g resources such as coal-fired or nuclear units, gas-fired<br />

combustion turb<strong>in</strong>es, repower<strong>in</strong>g <strong>of</strong> exist<strong>in</strong>g units, <strong>in</strong>tegrated gasification, or w<strong>in</strong>d<br />

turb<strong>in</strong>es), or cus<strong>to</strong>mer service options (e.g., demand-side management actions,<br />

<strong>in</strong>clud<strong>in</strong>g energy efficiency improvements and energy conservation, or beneficial<br />

electrification). . . .<br />

TVA developed 2,000 energy resource strategies from more than 100<br />

supply-side and 60 cus<strong>to</strong>mer service options. These strategies were then analyzed<br />

through the use <strong>of</strong> computer models <strong>to</strong> identify comb<strong>in</strong>ations <strong>of</strong> resource options<br />

that best met the evaluation criteria . . . .<br />

The multi-attribute trade<strong>of</strong>f method allowed potential environmental<br />

impacts <strong>of</strong> each strategy <strong>to</strong> be compared <strong>to</strong> all other evaluation criteria (such as<br />

debt, electric rates, and economic development) and <strong>to</strong> all other strategies on an<br />

objective basis. This process identified where real trade<strong>of</strong>fs existed. One <strong>of</strong> the<br />

most important trade<strong>of</strong>fs occurred between better environmental performance and<br />

electric rates because achiev<strong>in</strong>g better environmental performance typically<br />

produces higher costs and higher electric rates. However, the <strong>in</strong>tegrated resource<br />

plann<strong>in</strong>g process used by TVA allowed it <strong>to</strong> reformulate strategies repeatedly <strong>to</strong><br />

produce strategies that performed better across all criteria, <strong>in</strong>clud<strong>in</strong>g<br />

environmental criteria. . . . Eventually this <strong>in</strong>tegration process produced seven<br />

f<strong>in</strong>al alternative strategies that performed well across all <strong>of</strong> the criteria, <strong>in</strong>clud<strong>in</strong>g<br />

environmental criteria.<br />

The TVA Board adopted the EIS’s preferred alternative (the portfolio<br />

alternative—a blend <strong>of</strong> the seven f<strong>in</strong>al alternatives) at its February 26, 1996, public meet<strong>in</strong>g,<br />

f<strong>in</strong>d<strong>in</strong>g that “TVA’s preferred portfolio alternative better enables TVA <strong>to</strong> meet cus<strong>to</strong>mer needs at<br />

an acceptable level <strong>of</strong> risk and still meet the objectives <strong>of</strong> balanc<strong>in</strong>g costs, rates, environmental<br />

10

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