5.3. ERMUSR 03-08-2005 - Laserfiche WebLink

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Minnesota Municipa/ Uti/ities Association Position Statement Protecting the Interests of WAPA Customers The Western Area Power Administration (WAPA) is one of four federal power marketing administrations (PMAs). WAPA markets and delivers reliable, cost-based hydroelectric power within a 15 state region of the central and western United States. WAPA is very important to Minnesota municipal utilities, providing wholesale power allocations to 47 municipal electric utilities in the western third of the state. WAPA's 17,000-mile transmission system carries electricity from 55 hydropower plants operated by the Bureau of Reclamation, the U.S. Army Corps of Engineers and the International Boundary and Water Commission. In marketing electricity, WAPA must follow many laws, regulations and policies, some of which are unique to that agency. Included in these laws is the Reclamation Project Act of 1939, which requires WAPA to give preference in selling federal power to certain types ofnon-profit organizations including cities, rural electric cooperatives, state and federal agencies, irrigation districts, public utility districts and Native American tribes. WAPA customers in Minnesota are served by the Upper Great Lakes Region office located in Billings, Montana, which, in turn, provides electric service from the seven dams of the Pick Sloan Missouri River Program, developed as a result of Congressional authorization in 1944. There were a number ofPMA-related issues addressed in the conference committee report of last year's comprehensive energy bill (H.R. 6), but unresolved at the conclusion of the 108th Congress, that are likely to be addressed in the 109th Congress. The conference report to the comprehensive energy bill (H.R. 6) included several provisions impacting PMAs that should be part of any future legislation, including proposals to: • Authorize WAPA to accept third party funds to finance the construction of new transmission. • Require transmission-owning PMAs to provide open access to their transmission lines to other market participants at rates comparable to what they charge themselves and under terms and conditions comparable to those they apply to themselves. • Authorize FERC to have limited regulation over PMA transmission rates and access and to compel PMA participation in regional transmission organizations. New federal legislation should also include provisions to: • Authorize the Corps of Engineers and the Bureau of Reclamation to use PMA customer receipts to fund the operation and maintenance of hydropower projects on an indefinite basis. • Require PMA security costs to be paid by general budget of the Bureau of Reclamation and not borne by the PMAs and their customers.