New legislation aims to provide affordable, reliable energy to four-state area
Washington – U.S. Senator Roger Marshall, M.D. (R-Kansas) joined Senators Jerry Moran (R-Kansas) and Josh Hawley (R-Missouri) in introducing the Southwestern Power Administration Fund Establishment Act, which would help stabilize energy rates and improve the electric grid to states in the Southwestern Power Administration (SWPA), including Kansas, Arkansas, Louisiana, Missouri, Oklahoma, and Texas.
Specifically, the SWPA would be granted the authority to operate on a self-funding, revolving fund. This change would allow SWPA more stable funding to lower customer rates, which can fluctuate because of market demands and severe weather. Additionally, the SWPA would have the ability to plan long-term infrastructure and power replacement improvements to avoid drastic and unnecessary spikes in power rates.
“Kansans – especially our farmers and ranchers – need reliable and affordable power,” said Senator Marshall. “Consumers have suffered from high energy costs for too long, and this bill will help deliver stable and affordable power while improving our power grid infrastructure. I am proud to stand with Senators Jerry Moran and Josh Hawley in supporting this important legislation.”
“It is critical that Kansans have access to reliable electricity at stable rates, especially during extreme and dangerous weather,” said Senator Moran. “This legislation will provide funding stability that will allow energy providers to make needed infrastructure improvements and prevent Kansans from suffering mass power outages.”
“After the devastating tornadoes last weekend that left victims without power for days, Missourians deserve consistent and affordable energy,” said Senator Hawley. “This legislation will ensure that every Missourian has access to power they can rely on.”
The legislation is supported by the Kansas Electric Cooperatives, Inc., Southwestern Power Resources Association, National Rural Electric Cooperative Association, and American Public Power Association.
“Kansas Electric Cooperatives, Inc. and its member co-ops have strongly supported the Southwestern Power Fund Establishment Act for its ability to provide appropriated dollars that will improve grid reliability while helping to stabilize rates,” said Lee Tafanelli, CEO, Kansas Electric Cooperatives, Inc. “We thank our home state Sens. Moran and Marshall for bringing forward legislation that will have a positive impact on our rural electric cooperatives and their consumer-members.”
“Federal hydropower is a reliably renewable generation resource,” said Nicki Fuller, Executive Director, Southwestern Power Resources Association. “This legislation recognizes the value of protecting that resource throughout the six-state region, making sure that these important assets are maintained. This legislation would go a long way toward ensuring grid reliability and affordably throughout the region for millions of homes, farms, and small businesses. I thank Sens. Moran and Marshall for introducing this important bill that represents good business sense.”
“NRECA supports the Southwestern Power Administration Fund Establishment Act. The self-financed revolving loan fund authorized by this bill would allow the Southwestern Power Administration to better manage infrastructure needs while being more responsive to market conditions and electric demands created by extreme weather events,” – National Rural Electric Cooperative Association.
“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.