Show I Western Resources x i der WRAP WRAP-UP i 11 i Funding panel on power boards lo By Helene C C Vernal Express Washington Correspondent Appropriations Washington The House Committee has directed several federal energy agencies to start moving surplus generation from the Pacific Nor Nor- Northwest Northwest and the Upper Midwest to the short power area of the Pacific Southwest It has also ordered them to speed up their decisions on rate changes propos propos- proposed proposed ed by the federal power marketing ad- ad administrations administrations ministrations so that the changes can go into effect six months after they have been submitted for review to the Federal Energy Regulatory Commission Moreover it wants to see some movement move move- movement ment on these problems by the time that the and come before the Committee next spring for their 1984 budget request it stated in its report II H 97 filed on Sept 21 to the 1984 energy and water development funding bill HR HR The bill is not expected to come up in the House until after the election There are five power marketing ad- ad administrations administrations ministrations Alaska Power Ad- Ad Administration Administration ministration APA Bonneville Power Administration Southeastern Power Administration SEP SEPA A Southwestern Power Administration and Western Area Power Ad- Ad Administration Administration ministration W AP A Basically they market federal power through govern govern- government government ment facilities except for SEPA which depends upon public utilities to wheel the federally generated power The House Appropriations Committee particularly leaned on and WAPAto to move ahead on additional bet bet- between between the Pacific Northwest and Califor- Califor California California nia and the Pacific Southwest Bon Bon- Bonneville Bonneville neville markets power in the Pacific Nor Nor- Northwest and in the rest of the West and part of the Midwest PACIFIC The Committee stated on Sept 21 in the report which became public on Sept 24 load and resource studies in- in indicate indicate projected excess of relatively low Jaw cost electric power In the Pacific Nor Nor- Northwest Northwest during the late and early The Committee Is aware of the escalating costs and shortages of electric power in California and the Pacific Southwest and insufficient transmission and capacity between the two areas Therefore the Committee en- en encourages encourages SPA to cooperate with and other utilities In expediting work on the previously approved high voltage direct current direct current transmission line between the Celilo Substation at the Dallas Dam on the Columbia River in the Pacific Nor Nor- Northwest and Mead Substation at Hoover Dam in Nevada on the Lower Colorado River This work should include whatever modifications to the original plans drafted a decade ago that are necessary to accommodate range long forecasts of resources and loads and to encourage participation by others Futher the Committee encourages encourages to continue its cooperative efforts to study further with other utilities in regions to en- en ensure ensure sure appropriate consideration of all possible markets for Pacific Northwest power supplied bot both firm and surplus it stated Further it approved the expenditure of 2 million by W AP A to expedite te work worl on the previously approved Dallas allas Dam to Hoover Dam line for the 1983 fiscal year which begins on Oct 1 1 W AP A and the other operate on annual ap- ap appropriations appropriations while operates on a basin account FINDING MARKETS FOR SURPLUS POWER In the report the Committee also directed to continue to step up its review of the potential for voluntary energy brokering It said energy broker broker- brokering ing uses a market mechanism to match potential sellers of electric energy with potential buyers and thus to Increase the volume of trade between utilities Brokering can take place either Inside or outside of formal power tools but broker broker- brokerIng brokering Ing mainly applies to transactions that take place outside of centrally dispatch dispatch- dispatched ed power pools The Commission staff should work with interested utilities and state com com- commissions commissions missions across the country to see whether it is possible to expand ex- ex particularly to sell term short firm energy and other surplus power available on an interim basis the Committee told This might help provide markets for the surplus power from the l hydroelectric facilities in the Pacific Northwest where there was a good water year In 1982 and in the Up- Up Upper Upper per Midwest where there Is surplus power from fired coal steam plants ac- ac according according cording to the Committee The problem is that there Is no ma- ma major major jor transmission line across the to connect the Upper Midwest with the Pacific Southwest Ronald Greenhalgh tol told Western Resources Wrap Wrap-up on Sept 29 He is the liaison officer here for which is headquartered in Golden Colo also needs to obtain power from other sources to replace the power being withdrawn Cen- Cen Centralia power plant in Washington state to supply preference pr ferenc users in Central and Northern California he said Studies Indicate that If transmission had been available surplus hydro from the Pacific Northwest could have been moved io o California this year to displace oil oil fired fired generation which cost California utilities million Greenhalgh said Rep Vie Vic Fazio D-Calif D urged the DOE and officials before the Commit Commit- Committee tee In March to look for new ways to meet the needs of California public power en en- en entities titles notably Sacramento Municipal Utility District The Committee generally agreed pro pro- providing providing viding W AP A can keep down costs In its report it said it had been told during testimony last spring that is looking at various alternatives to reduce future purchase power appropriation re- re requests requests quests for the Central Valley Project In California The Committee endorses that effort and desires to be kept Inform Inform- Informed informed ed of the progress being made the report stated WEST EAST TRANSFER CAPABILITY On this point Administrator Robert L McPhail told the Committee in March Recently the North American Electric Reliability Council reported that utilities in the Western United States must still depend on substantial amounts of oil fired genera genera- generation generation tion while Midwestern systems have fired coal coal fired surpluses even after replacing their oil generation Therefore we believe additional east east- west to-west transfer capability by construction construction tion of an In the Miles City Mont area connecting lines east of the the Pacific Northwest is vital to transmit fired coal energy surpluses to offset oil fired generation needed by Western to meet Central Valley Project obligations Another significant benefit of this in in- in interconnection is that a firm path will be established to balance load and resource obligations of nonfederal non power sup sup- suppliers suppliers pliers that serve customers on both sides of the west east separation These benefits also supply to additional Inter Inter- tie projects we have underway Our FY 1983 budget request Includes for work on a second direct current con con- converter converter verter station at Sidney Neb and we are conducting joint planning studies for a third in the Fort Peck Mont area McPhail testified II Another weak area in our sy tem is in Western Colorado and Eastern Utah according to studies of the Western Systems Coordinating Council Greenhalgh told on Sept 29 Generally speaking he said work has been going along pretty well weIl in the theW W AP A construction program except for fora fora a delay in a new kilovolt line that Public Service Co of Colorado and Colorado Ute Electric Association of Montrose Colo were planning on building in Western Colorado to connect with the Four Corners plant near Shiprock NM The Colorado Public Utility Commis- Commis Commission slon sion on Feb 5 1982 denied Colorado Ute a permit to start construction so it had to modify its plan and resubmit Its application ap- ap application according to Greenhalgh We think that problem has been resolved said Greenhalgh but it has delayed delayed a construction start of the line by seve several al months he told PM AS A'S AND REPAYMENT The Committee stated in its report t that It has been concerned for several years that the have not been charging rates sufficient to repay their obligations under law The size of some of the rate Increases projected at t the e time of the hearings In March Indica indicate e that the have been heeding the Committees Committee's warnings in this regard Melvin Greer the Committee who works on this part of the funding pro pro- process cess cess and oversight over told on Sept 28 that was still behind In Its repayments was In sad shape early In 1981 but It has started to become current W AP A was behind on the Rio Grande project and AP APA A and SEPA are ale In pretty good shape The have been In a bind on rates The Department of Energy in 1978 delegated authority to to review rate changes of the also has statutory authority to review all rates While the House panel has been on the back to increase their rates to repay their obligations has taken Its time to review the proposed rate changes Since 1979 the have submitted 26 rate actions to for review and final approval and had confirm confirm- confirmed confirmed ed only 16 of them as of March 2 accor- accor according according ding to the testimony before the panel last spring Bonneville has never had hada a rate adjustment approved by and it has now the wide system rates having submitted two of them and anda a third Is now scheduled for next fall Dr Daniel M Ogden Jr director of the theDOE DOE marketing coordination office testified BP A was the put on the griddle by the Committee about its shortfall in repayment Data indicated according to Committee calculations that the federal investment In was 73 billion repayment through fiscal 1981 was million and the shortfall through 1981 was million What Wha t are you going to todo todo do about it Rep Tom Bevill Ala D-Ala chairman of the Water and Power Ap- Ap Appropriations Appropriations Subcommittee asked Peter T Johnson Administrator Johnson said was on an austeri- austeri austerity ty program and despite adverse economic conditions in the Pacific Nor and the problems with cost over over- overruns overruns runs from the nuclear plants in the Washington Public Power Supply System we are planning to recover the shortfall over a year three period en- en ending ending ding June He conceded under sharp questioning that even after an 80 percent rate Increase last year has the lowest rates the biggest debt and is the most delinquent of the five in making repayment to the Treasury To try to move rate usually changes Increases along the Committee directed DOE and to come to an agreement on criteria for adequate rates and repayment schedules with a time limit for review and decision on rates of six months The panel directed them to have It ready to submit to Congress prior to the 1984 budget |