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Western Area Power Administration

From Alfawiki
Western Area Power Administration
Company typeFederal agency
IndustryElectric power transmission and marketing
FoundedAugust 4, 1977; 49 years ago (1977-08-04)
Headquarters
Lakewood, Colorado
,
United States
Area served
15 states in the central and western United States
Key people
Tracey A. LeBeau (Administrator and CEO)
ProductsWholesale hydropower transmission and marketing
OwnerUnited States Department of Energy
Websitewww.wapa.gov

As one of the quartet of power marketing administrations within the U.S. Department of Energy, the Western Area Power Administration (WAPA) is responsible for distributing wholesale hydropower generated at 57 federal hydroelectric dams managed by the Bureau of Reclamation, United States Army Corps of Engineers, and the International Boundary and Water Commission. WAPA transmits this electricity through an extensive 17,000-circuit-mile, high-voltage power transmission network to more than 700 preference customers throughout the western United States, who in turn supply power to over 40 million end users. The agency’s headquarters is located in Lakewood, Colorado, near Denver, Colorado.

WAPA’s service region spans 15 states across the central and western U.S.: Arizona, California, Colorado, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Texas, Utah, and Wyoming.

History

Created under Section 302 of the Department of Energy Organization Act signed into law by President Jimmy Carter on August 4, 1977, WAPA inherited responsibility for power marketing as well as ownership, operation, and maintenance of the federal transmission infrastructure from the Bureau of Reclamation. The Bureau continued to oversee other aspects of water projects, including construction and upkeep of dams and powerplants.

Power marketing

WAPA’s hydropower supply originates from federal dams spread across 11 states, representing roughly 40% of hydroelectric output in the western and central regions of the country. Until its shutdown in November 2019, WAPA also managed the distribution of the United States’ 547-megawatt share from the coal-fired Navajo Generating Station near Page, Arizona.

Hydropower production results from federal dams primarily constructed for irrigation storage, flood control, and navigation purposes. Early powerplants initially met project-use demands before generating revenue through electricity sales.

The agency prioritizes supplying project-use power necessary for operating dam infrastructure and irrigation pumping systems. Excess generation beyond these needs is sold at cost-based rates to preference customers under long-term agreements; any additional hydropower available after fulfilling these contracts is sold at market-based prices on the short-term spot market.

Rates based on cost recovery cover operations, maintenance, federal investment costs, and interest expenses. Market prices apply exclusively to surplus hydropower and transmission capacity offered once contractual commitments have been satisfied.

WAPA provides four categories of contracts:

  • long-term firm power along with other extended sales
  • nonfirm energy plus short-term sales or purchases
  • seasonal power agreements
  • purchased power arrangements

Electricity sales are arranged by project—either involving a single major plant or a combination of smaller facilities. Although Congress frequently defines these projects individually, WAPA consolidates them into 11 rate-setting systems to streamline sales and rate administration:

While WAPA collaborates with its energy-producing partners, each operates under separate management and financial frameworks, maintaining independent accounting systems for every water project.

Transmission network

WAPA manages and operates an extensive transmission system exceeding 17,000 circuit miles of high-voltage lines, accounting for over 10 percent of the Western Electricity Coordinating Council’s grid. Its chief responsibility is to transmit hydropower as stipulated in contracts to its customers, while any surplus capacity is offered for sale through the Open Access Same-Time Information System.

The transmission assets encompass power lines, substations, transformers, communication towers, circuit breakers, interconnections, and direct-current links. WAPA personnel oversee system maintenance and administer balancing authorities to continuously align power generation with consumption. Additionally, they supply ancillary services to maintain grid stability and reliability.

WAPA played a pivotal role in constructing significant sections of the Path 15 corridor, which connects electrical grids in the Southwest and Pacific Northwest regions, complementing private infrastructure developed by PG&E. In November 2011, WAPA addressed a major transmission constraint near Los Banos, California—a contributing factor to the 2000-01 California electricity crisis. Moreover, WAPA developed Path 66, a parallel transmission route to Path 15.

The agency owns and operates multiple substations such as the Mead substation that facilitate regional electricity distribution.

Following the Southwest blackout in 2011, WAPA settled with both FERC and NERC concerning matters related to system reliability.

WAPA's clientele

In accordance with legislation such as the Reclamation Project Act of 1939, WAPA gives priority in power sales to specific non-profit organizations including federal and state agencies, water and irrigation districts, municipalities, public utility districts, Native American tribes, and rural electric cooperatives. Certain laws also define entities or geographic zones eligible for preferential access to Federal hydropower.

WAPA exercises discretion when allocating power among preference customers and has extended allocations to entities including wildlife refuges, universities, and mass transit authorities. Marketing boundaries are delineated based on historical practices, locations of power plants, state borders, or river basin areas to establish eligible service regions.

Transmission Infrastructure Program

Section 402 of the American Recovery and Reinvestment Act of 2009 amended the Hoover Power Plant Act of 1984 to permit WAPA to borrow up to $3.25 billion from the U.S. Treasury for transmission initiatives that improve renewable energy integration into the electrical grid.

To utilize this authority, WAPA created the Transmission Infrastructure Program (TIP). To date, two projects have been finalized while several others remain under development.

Organizational structure

WAPA delivers power sales, transmission management, maintenance, and engineering services through 51 duty stations grouped into four regions, a management center, and headquarters. Regional offices oversee contracts and daily operations; meanwhile, centralized departments such as finance, IT, safety, and security operate from headquarters.

Key offices include:

Executive leadership team

  • Tracey A. LeBeau – Administrator and CEO
  • Tina Ko (acting) – Executive Vice President and COO
  • Michael Peterson – Senior Vice President and CFO
  • Michael Montoya – Senior Vice President and CIO
  • Ron Klinefelter (acting) – Senior Vice President and General Counsel
  • Dionne Thompson – Senior Vice President and Assistant Administrator for Corporate Liaison
  • Paul Schwabe – Senior Vice President and Chief Administrative Officer as well as TIP Manager
  • Jack Murray – Senior Vice President and Desert Southwest Regional Manager
  • Barton Barnhart – Senior Vice President and Rocky Mountain Regional Manager
  • Sonja Anderson – Senior Vice President and Sierra Nevada Regional Manager
  • Lloyd Linke – Senior Vice President and Upper Great Plains Regional Manager
  • Rodney Bailey (acting) – Senior Vice President and CRSP Management Center Manager

References

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