Arizona power users would get price break from Senate bill

Tony Davis  

Arizona Daily Star

New legislation sponsored by Arizona’s U.S. senators would try to give a price break to customers of federal power across the West whose power costs spiked as water levels at reservoirs plummeted.

But before the bill could have its full impact, it’s very possible if not likely it would have to be accompanied by an infusion of federal tax dollars to hold down the cost of federal power to customers in Arizona and six other states.

The bill is aimed at easing a painful side-effect of the ongoing Colorado River water crisis: the boost it has spawned in electricity prices for nonprofit power customers, including cities such Tucson and Phoenix, the giant Central Arizona project, towns, tribes, farmers’ irrigation districts and power co-operatives.

As water levels have fallen since 2000 in reservoirs such as lakes Mead and Powell, due partly to climate change, less water runs through the dams’ turbines. Less electricity is generated. The lost energy must be replaced. That usually means buying replacement power on the private market at a sharply higher cost.

The bill, sponsored by Sens. Mark Kelly and Krysten Sinema of Arizona and Utah Rep. Celeste Maloy, would under certain circumstances direct the federal Western Area Power Administration to reduce rates paid by hundreds of power customers in the seven Colorado River Basin states, including around 100 operating in Arizona.

The rate cuts would take effect when power generation from Hoover and Glen Canyon dams, along with several others across the West, drops below specified minimum levels — levels Hoover and Glen Canyon have at least approached in recent years.

The power administration, commonly known as WAPA, manages power operations and sales for many major dams across the Colorado River Basin.

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