Powering Strong Communities

Legislation Would Shift the Southwestern Power Administration to a Self-Financing Model

Senators Jerry Moran (R-KS) and Roger Marshall (R-KS) on April 28 introduced a bill that would move the Southwestern Power Administration to a self-financing model.

The bill, S. 1324, the Southwestern Power Administration Fund Establishment Act, would address the long-term shortfall SWPA faces in receiving funding authority for purchase power and wheeling needs used to plan for and respond to drought, as well as to support long term capital investments for hydropower assets.

The bill Southwestern Power Administration Fund Establishment Act would give the SWPA the authority to operate on a self-funding, revolving Treasury fund to help provide long-term stability to SWPA.

“This would give the SWPA more stable funding in order to lower customer rates, which can be highly volatile due to market demand and weather,” the lawmakers said in a news release.

“Furthermore, this legislation would provide SWPA more clarity to help plan long-term infrastructure improvements and power replacement. This bill will also allow SWPA to avoid drastic and unnecessary spikes in power rates charged to its wholesale customers in an extreme or multi-year regional drought situation,” they said.

The SWPA customer group, Southwestern Power Resources Association, supports this legislation, as does the American Public Power Association.

SWPA is one of four Power Marketing Administrations in the U.S. Its service territory includes Arkansas, Kansas, Louisiana, Missouri, Oklahoma and Texas.