The two methods [FERC] now uses to evaluate the economic value of power from hydro projects have evolved through the years and generally conform to techniques set forth in the Principles and Standards, which the Water resources Council published as final rules in September 1980. Both methods attempt to quantify how an electric power system's future costs would differ with and without a proposed or existing hydro project. The two methods: 1. Simulated market price (often called marginal price, avoided cost, or incremental cost in the electric utility industry) 2. Cost of the most likely thermal alternative