Title
GLENDALE HOOVER POWER ALLOCATION AND CONTRACTS
Staff Contact: Craig A. Johnson, P.E., Director, Water Services
Staff Presenter: Douglas E. Kupel, Ph.D., Deputy Director, Water Services
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Purpose and Policy Guidance
Recommendation
This agenda item is for City Council consideration of staff recommendations regarding contracts associated with an allocation of hydroelectric power from Hoover Dam. Glendale received an allocation of Hoover power from the Western Area Power Authority (Western) and will need to execute two contracts to receive the power associated with the allocation. Staff is seeking guidance from Council regarding approval of a contract with the Arizona Power Authority (APA) to receive the allocation and a separate contract with Salt River Project (SRP) to receive the value of the Hoover power. body
Background
Water supplies and power generated from the Boulder Canyon Project serve over 20 million people. Power from Hoover Dam is allocated to Arizona, California, and Nevada.
Electricity from the dam's powerhouse was originally sold pursuant to a 50-year contract, authorized by Congress in 1934, which ran from 1937 to 1987. In 1984, Congress passed a new statute which set 30-year power allocations from the dam from 1987 to 2017. In 2011, Congress enacted the Hoover Power Allocation Act that will allow extending the contracts until 2067. The 2011 Act also set aside 5% of Hoover power for sale to Native American tribes, electric cooperatives, and other new entities. Glendale is one of the new entities that received a small allocation of Hoover power as a result of the 2011 Act. The new arrangement will begin on October 1, 2017, pending contract approval.
The 2011 Act distributes Hoover power under four schedules:
Schedule A allocates power to the original purchasers of Hoover power under the Boulder Canyon Project Act of 1928.
Schedule B allocates power to the contractors who provided advance funding of the Hoover power turb...
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