Bill Overview
Title: To direct the Administrator of the Western Area Power Administration to provide its firm electric service customers with credits from shortfalls in generation from certain Bureau of Reclamation hydroelectric facilities, and for other purposes.
Description: This bill requires the Western Area Power Administration to provide customers with a credit that reflects decreased hydropower output from specified projects until December 31, 2026.
Sponsors: Rep. Stewart, Chris [R-UT-2]
Target Audience
Population: Individuals served by the Western Area Power Administration's firm electric service customers
Estimated Size: 4000000
- The Western Area Power Administration (WAPA) provides electricity to a number of customers, which includes federal, state, and municipal entities, as well as some Native American tribes.
- WAPA's grid serves millions of people across the western United States, spanning a service area that covers more than 1.3 million square miles.
- Hydroelectric facilities under the Bureau of Reclamation often provide electricity for a variety of uses, including residential, industrial, and agricultural.
- Reduced hydroelectric output could affect these customers' electricity supply or costs, but the bill mitigates financial impact by providing credits for shortfalls in generation.
- The direct financial impact is mainly on the entities billed by WAPA, though indirect benefits extend to the populations they serve as the cost would not be passed down fully to end-users.
Reasoning
- The Western Area Power Administration's services cover a large geographical area and diverse customer base, meaning impacts range based on individual reliance on hydroelectric power, occupation, and local energy policies.
- Given the budget constraints, individual impacts are limited, and benefits would cascade through larger entities more so than directly to residential customers.
- The policy does not create new power sources but mitigates cost increases due to decreased generation, benefiting those most dependent on WAPA services, particularly in rural areas and tribal communities.
- Due to the vast area of service, while many people are indirectly served by WAPA, in practice, the details of contract agreements determine how direct the benefit received by individuals is, often passing through municipalities.
Simulated Interviews
Municipal Electric Manager (Phoenix, Arizona)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- The policy provides vital financial relief as our city relies heavily on hydroelectric power.
- Credits are essential to stabilizing our municipal budget amidst reduced hydro output.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Farmer (Rural Colorado)
Age: 36 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Our cooperative's electricity costs are a substantial part of our farming operations.
- Any reduction in financial burden from power costs helps sustain our business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 4 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 2 |
City Planner (Los Angeles, California)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- While WAPA credits are helpful, Los Angeles has made strides in using renewable energy that diversifies us away from sole dependency on hydropower.
- Short-term credits ease current budgets but don't change our long-term plans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Renewable Energy Consultant (Salt Lake City, Utah)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- Financial credits help bridge gaps in power supply but aren't solutions for sustainable energy.
- The policy provides temporary relief but incentivizing renewable expansion is key.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Environmental Scientist (Portland, Oregon)
Age: 42 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 6/20
Statement of Opinion:
- The credit policy is a stopgap that doesn't address the root issues of climate impacts on hydro power.
- Instead, policies should focus on reducing emissions and increasing renewable energy sources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Electric Cooperative Director (Reno, Nevada)
Age: 51 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This credit is crucial for maintaining affordability for rural consumers.
- Reduces likelihood of needing to increase rates drastically due to lower hydro output.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 6 | 2 |
Economist specializing in Utility Costs (Santa Fe, New Mexico)
Age: 44 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- Credits provide short-term financial benefits but more systemic solutions are needed for long-term economic stability.
- Local economies will still feel the pinch without broader energy reforms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Retired Engineer (Boise, Idaho)
Age: 63 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- The credits are a practical necessity given our reliance on hydro.
- There's no overnight fix, and such policies buy time for necessary adjustments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Student (Las Vegas, Nevada)
Age: 25 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- Financial credits are good for immediate relief, but innovation in energy sources is what we need.
- I worry more about the long-term stability of our energy supply.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Commercial Real Estate Manager (Denver, Colorado)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- Stability in energy costs due to credits helps reduce uncertainties in property management.
- Efficiencies and savings eventually boost local real estate markets.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $20000000 (Low: $15000000, High: $25000000)
Year 3: $20000000 (Low: $15000000, High: $25000000)
Year 5: $20000000 (Low: $15000000, High: $25000000)
Year 10: $20000000 (Low: $15000000, High: $25000000)
Year 100: $20000000 (Low: $15000000, High: $25000000)
Key Considerations
- The bill essentially compensates for electricity shortfalls, hence assisting affected areas by avoiding substantial price increases.
- It is important to consider potential environmental factors such as droughts which could increase the duration or extent of power shortages.
- The financial burden on WAPA should be monitored to understand the broader fiscal implications beyond customer credits.