Southwestern Power Administration
| Company type | Division of the U.S. Department of Energy |
|---|---|
| Industry | Electric power marketing |
| Founded | 1944 |
| Founder | United States Congress |
| Headquarters | United States |
Area served | Texas, Arkansas, Oklahoma, Missouri, and neighboring states |
| Products | Hydroelectric power |
| Owner | United States Department of Energy |
| Parent | United States Department of Energy |
The Southwestern Power Administration (Southwestern) operates as a division within the U.S. Department of Energy. Created under Section 5 of the Flood Control Act of 1944, it functions as a power marketing administration tasked with distributing hydroelectric power produced by 24 multipurpose dams constructed by the United States Army Corps of Engineers. Legally, Southwestern is mandated to sell electricity solely to publicly owned entities, including rural electric cooperatives and municipal utilities. It caters to over 100 preference customers, who collectively provide power to more than 10 million consumers.
Southwestern oversees a network comprising 1,380 miles of high-voltage transmission lines, 24 substations, and 46 communication facilities through its regional offices. The agency’s centralized Operations Center handles continuous power scheduling and dispatching.
The agency’s rate structure is designed to recover all costs fully, encompassing repayment with interest for the construction of dams and transmission infrastructure, major refurbishments, as well as annual operation and maintenance expenses for both the Corps of Engineers and Southwestern itself. On average, yearly revenues amount to around US$100 million, which are returned to the U.S. Treasury, with approximately US$40 million allocated toward interest payments and repayment of federal investments.
History
Efforts led by Texas Speaker Sam Rayburn and Arkansas Representative Clyde T. Ellis focused on maintaining federal ownership of dams built by the U.S. Army Corps of Engineers, while establishing the Southwestern Power Administration (SWPA) to oversee and market their hydroelectric output. In the late 1930s, Rayburn and Ellis secured control over dams at Denison, TX and Norfork, AR within their congressional districts. They championed the creation of a regional system resembling a smaller-scale version of the Tennessee Valley Authority, intended to supply power across Texas, Arkansas, Oklahoma, Missouri, and neighboring states purchasing electricity from these dams. Unlike the TVA, SWPA managed only hydroelectric facilities on federally constructed dams and did not operate any fossil fuel plants.
Central to Rayburn’s vision was expanding affordable electricity access in rural areas, complementing his earlier achievement with the Rural Electrification Act of 1936 that fostered rural electric cooperatives providing low-cost power. The SWPA, along with other Power Marketing Administrations, played a critical role in delivering inexpensive hydroelectric energy that supported REA’s rural electrification objectives. Initially established by a 1943 executive order signed by President Roosevelt—aimed at preventing private utilities from transferring dam control to the Federal Works Agency—the SWPA was formally authorized through the Flood Control Act of 1944, which also created the Southeastern Power Administration. From 1943 until 1984, twenty-four dams were developed under SWPA’s jurisdiction.
List of dams
Visual Representations of Southwestern Power Administration
Bibliography
- Executive Order No. 7037 ~ Creation of the Rural Electrification Administration, Franklin D. Roosevelt, May 11, 1935, National Archives and Records Service, pp. 172-175
- Franklin D. Roosevelt: "Executive Order 9366 - Concerning the Management and Allocation of Electric Power at Denison Dam, Grand River Dam, and Norfork Dam," July 30, 1943, The American Presidency Project, University of California - Santa Barbara
- Southwestern Federal Power Program—Financial Status and Challenges, U.S. General Accounting Office, November 22, 1972, Congressional Report, U.S. Government Printing Office
- Electricity for a Region: The Southwest Power Administration, Jeanette W. Ford, 1982, The Chronicles of Oklahoma, vol. 60, no. 4 (Winter 1982-83), Oklahoma Historical Society, pp. 448-459
External links
- Southwestern Power Administration entries within the Federal Register