Congressman Sam Graves (MO-06) introduced legislation to help provide stable energy rates and a reliable energy grid to states in the Southwestern Power Administration (SWPA), including Missouri, Arkansas, Louisiana, Kansas, Oklahoma, and Texas.
“Missouri’s rural electric cooperatives and municipal utilities have worked with the Southwestern Power Administration (SWPA) to provide affordable and reliable electricity to Missouri families for over 80 years,” said Graves. “But the way SWPA is set up, droughts and other disruptions can cause rate spikes that are passed on to co-ops and municipalities that have no choice but to increase electric rates on Missouri families. This common-sense legislation creates a revolving fund to fix that problem—giving SWPA the stable funding necessary to plan long-term infrastructure improvements, avoid costly rate spikes, and lower customer rates.”
The SWPA, part of the Department of Energy, markets power produced by federal hydropower projects, including Clarence Cannon Dam and Harry S. Truman Dam, to electric cooperatives and municipal utilities in Missouri, Arkansas, Louisiana, Kansas, Oklahoma, and Texas. The 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 provide the certainty and stable funding SWPA needs to plan long-term infrastructure improvements and avoid drastic and unnecessary spikes in power rates charged to electric cooperatives and municipal utilities in an extreme or multi-year regional drought.
The Southwestern Power Administration Fund Establishment Act is supported by the Association of Missouri Electric Cooperatives, Missouri Public Utilities Association, Southwestern Power Resources Association, National Rural Electric Cooperative Association, and American Public Power Association.
“Missouri’s rural electric cooperatives thank Congressman Graves for leading this effort to provide more reliable and affordable electricity for Missouri families. When no one else would, Missouri’s electric cooperatives answered the call to provide power to every farm and every home in every corner of this state. Now, this bill ensures we can keep providing affordable, reliable electric service to Missouri families for decades to come.” – Caleb Jones, CEO/Executive Vice President of the Association of Missouri Electric Cooperatives
“The Southwestern Power Administration Fund Establishment Act brings federal hydropower into the 21st Century. MPUA applauds Congressman Graves for his leadership in recognizing this vitally important renewable energy generation not only as part of Missouri’s rich history but also for its future to provide cost-based power for generations to come. We look forward to working with Congressman Graves toward the enactment of this innovative legislation.” – John Twitty, President & CEO, Missouri Public Utilities Alliance
“The American Public Power Association applauds the introduction of the Southwestern Power Fund Establishment Act. Since 1943, not-for-profit public power utilities and rural electric cooperatives have successfully partnered with the Southwestern Power Administration (SWPA) to bring reliable hydropower produced at Army Corps dams to millions of customers in Arkansas, Kansas, Louisiana, Missouri, Oklahoma, and Texas. While SWPA customers pay all costs of generating and transmitting the electricity in their power rates, a complicated funding process has increasingly failed to provide the financial certainty necessary to steady power rates to customers during drought and extreme weather events.
The Southwestern Power Fund Establishment Act would streamline this process in a manner that would help avoid rate spikes and economic hardship for communities served by public power utilities and rural electric cooperatives while continuing to ensure that SWPA customers pay all costs associated with generating and transmitting hydropower produced at Corps dams. It is a win-win for the federal government and communities served by not-for-profit electric utilities.” – American Public Power Association
You can find the full text of the legislation here.
