Graves bill would lower cost of hydropower for co-op members

Contact:
Jim McCarty
573-659-3402
jmccarty@amec.coop

Graves bill would lower cost of hydropower for co-op members

Legislation introduced by U.S. Rep. Sam Graves has the potential to save money for consumers of electric cooperatives and municipal utilities, electric cooperative officials say.

Graves’ Southwestern Power Administration Fund Establishment Act would establish a revolving fund to provide stable funding for the Southwestern Power Administration (SWPA), which markets electricity generated at federal dams in Missouri, Arkansas and Oklahoma.

“This legislation 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,” says Caleb Jones, CEO of the Association of Missouri Electric Cooperatives.

The Southwestern Power Administration is an agency of the federal government that markets the electricity generated at federally owned dams to public-power utilities in six states. Missouri is the biggest beneficiary of this resource, receiving 33% of SWPA’s energy to power the homes and businesses of more than 2.8 million people. In 2022, 4% of the electricity used by Missouri electric co-op members served by Associated Electric Cooperative came from SWPA.

While hydropower is the cheapest resource for generating electricity, it is a limited commodity dependent on rainfall and the capacity of lakes and dams to store water.

Currently, SWPA’s funding comes from sale of power to its customers, including Associated Electric Cooperative which provides wholesale power to co-op members in Missouri and parts of Iowa and Oklahoma. SWPA’s revenue dips substantially during drought years when water shortages prevent normal power generation.

The revolving fund called for in Rep. Graves’ bill would provide the stability the agency needs to help avoid rate spikes and economic hardships for communities served by municipal utilities and electric cooperatives. At the same time, it will continue to ensure SWPA customers pay all of the costs associated with generating and transmitting hydropower produced at federal dams, including Clarence Cannon, Truman, Table Rock and Stockton in Missouri.

“Missouri’s rural electric cooperatives thank Congressman Graves for leading this effort to provide more reliable and affordable electricity for Missouri families,” Jones says. “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.”

Rep. Graves serves Missouri’s 6th Congressional District. He is a sixth-generation farmer and lifelong resident of Tarkio, Missouri.

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U.S. Rep. Sam Graves