Board of Directors

Resolutions

COLORADO RIVER ENERGY DISTRIBUTORS ASSOCIATION (CREDA)

RESOLUTION 2000-01

 

            The Board of Directors of the Colorado River Energy Distributors Association (CREDA) finds:

 

            The Colorado River Storage Project (CRSP) produces hydropower at five dams:  Glen Canyon on the Colorado River, Flaming Gorge on the Green River, Blue Mesa, Morrow Point and Crystal on the Gunnison River.  70% of that hydropower is generated at Glen Canyon Dam.  Power and water operations at other dams including Navajo, Elephant Butte, Collbran, and Fontenelle also support operations of the CRSP.

 

            CRSP dams were authorized by Congress to provide and do provide a wide range of significant benefits to millions of consumers in the West:

 

§         River Regulation

§         Municipal Water Supply

§         Interstate Compact Deliveries

§         Irrigation

§         Flood Control

§         Power Generation

§         Lake and Stream Recreation

§         Fish and Wildlife Mitigation and Propagation

§         Blue Ribbon Trout and Other Sport Fishery Enhancement

§         Economic Development

 

            CRSP power purchasers also contribute significant funding for environmental programs.  They fund more than $7 million per year for the Adaptive Management Program for resources downstream from Glen Canyon Dam; they support pending legislation which will provide $17 million for capital projects for the Upper Basin Endangered Fish Recovery Program, and $6 million annually for ongoing operation and maintenance of those capital projects on the Upper Colorado and San Juan Rivers.  They also contribute funds to the Colorado River Salinity Control Project.

 

            CRSP power purchasers pay over 95% of the total reimbursable costs of the CRSP facilities, including the costs of irrigation features plus the aforementioned environmental programs, ensuring repayment of the federal debt plus interest.  If hydropower from Glen Canyon Dam is eliminated, $3.2 billion will be lost to the U.S. Treasury.

 

            Clean, renewable hydro generation produced by CRSP facilities is provided to nearly three million consumers in six Western states.  Yesterday’s surplus generation in the West has been swallowed by growth.  If the hydropower from Glen Canyon Dam is no longer available, replacement power will be required.  Alternative generation resources are generally less environmentally benign, more expensive, and in many cases, not available on a timely basis.  Lost hydropower generation will only worsen future projected electricity shortages.

 

            BE IT HEREBY RESOLVED on the 12th day of May, 2000, the Board of Directors of the Colorado River Energy Distributors Association opposes any effort to breach or remove Colorado River Storage Project dams or drain associated reservoirs.   

 

 

COLORADO RIVER ENERGY DISTRIBUTORS ASSOCIATION (CREDA)

RESOLUTION 2001-01

 

INFRASTRUCTURE SECURITY COSTS

 

 

            The Board of Directors of the Colorado River Energy Distributors Association (CREDA) finds:

 

            The federal Colorado River Storage Project (CRSP) hydropower and delivery systems were authorized by Congress to provide a wide range of significant benefits to millions of citizens in the Western United States and elsewhere, including:

 

·        Flood Control

·        Irrigation

·        Municipal water supply

·        Interstate and international compact water deliveries

·        Lake and stream recreation

·        Blue ribbon trout fisheries

·        River regulation

·        Economic development

·        Fish and wildlife propagation and mitigation

·        Power generation and transmission

 

Ensuring the security of these federal facilities is of utmost importance to all citizens of the United States, not just to the direct beneficiaries of CRSP resources.

 

CRSP power purchasers already pay over 95% of the total reimbursable costs of the CRSP facilities, including subsidizing the costs of irrigation features and environmental programs, ensuring repayment of the federal debt plus interest.

 

THEREFORE, BE IT HEREBY RESOLVED on the 2nd day of November, 2001, the Board of Directors of the Colorado River Energy Distributors Association recommends that all costs associated with ensuring security of CRSP facilities in the aftermath of the events of September 11, 2001 be treated as non-reimbursable and that payment of such costs be funded through federal appropriations.

 

 

 

COLORADO RIVER ENERGY DISTRIBUTORS ASSOCIATION (CREDA)

RESOLUTION 2003-01

 

            The Board of Directors of the Colorado River Energy Distributors Association (CREDA) finds:

 

            In a Notice of Proposed Rulemaking (NOPR) released on July 31, 2001, the Federal Energy Regulatory Commission (FERC) proposed a standard market design (SMD) for all wholesale electricity markets nationwide.  The proposal is based on the proposition that undue discrimination in transmission access exists in all regions and that such discrimination is unlawful under the Federal Power Act and must be remedied.  The SMD proposal is intended to address this problem.

 

CREDA members serve nearly three million consumers in six Western States.  They are load-serving entities that have permanent obligations and commitments to their customers.  CREDA members fulfill such commitments in part through long-term contracts with the Western Area Power Administration for the delivery of federal resources over the Colorado River Storage Project (CRSP) transmission system.

 

CREDA members support fair and nondiscriminatory access to transmission, and the continued development of more competitive wholesale power markets that are free of market power and produce just and reasonable rates.

 

CREDA members believe that in the western United States, the FERC has not demonstrated that benefits of SMD as proposed significantly exceed the potential costs to consumers.  In fact, with the CRSP, SMD could result in a transmission rate increase to CRSP customers ranging from 15% to over 100%.

 

THEREFORE, BE IT HEREBY RESOLVED on the 24th day of January, 2003, that the Board of Directors of the Colorado River Energy Distributors Association opposes implementation of SMD as proposed by FERC and encourages FERC to utilize its existing orders to continue to promote and ensure open and nondiscriminatory transmission access.

 

COLORADO RIVER ENERGY DISTRIBUTORS ASSOCIATION (CREDA)

RESOLUTION 2003-02

The Board of Directors of the Colorado River Energy Distributors Association (CREDA) finds:

• Whereas, a combination of market, environmental experiments and hydrologic conditions have created CRSP rate and resource imbalances and unstable, non-sustainable cash flow conditions.

• Whereas, CREDA has a diverse membership with a variety of resource options, strategic priorities and risk management strategies.

• Whereas, Western has provided CREDA with short-term options to manage cash flow and power procurement for FY04.

• Whereas, CREDA desires to provide guidance to Western in the selection of a short-term option to resolve the immediate cash flow problem.

• Whereas, CREDA understands that a long-term solution must be developed concurrent with the implementation of the short-term solution.

• Whereas, CREDA recognizes that any long-term solution must be compatible with the diverse interests of CREDA membership.

• Whereas, CREDA desires to work with Western to develop a long-term equitable strategy that further enhances rate and resource stability and reflects the strategic interests of CREDA members.

THEREFORE, BE IT HEREBY RESOLVED on the 15th day of July, 2003, by unanimous vote of the Board of Directors:

CREDA recommends Western adopt a short-term option which provides for a prorata reduction of approximately 1700 gwh for FY04. CREDA also advises Western that this short-term option which allows for Western firming of resources does not set a precedent for continued firming of resources in the future. CREDA will immediately begin working with Western to develop a long-term strategy consistent with the stated CREDA principles that will provide for a reduction of SHP to levels that are hydrologically sustainable. CREDA will pursue a customer choice option for those customers who have different requirements with respect to SHP firming by Western. CREDA will encourage Western to complete a proposed long- term strategy by January 1, 2004 with the goal of implementation of this strategy on October 1st, 2004.

COLORADO RIVER ENERGY DISTRIBUTORS ASSOCIATION (CREDA)

RESOLUTION 2004-01

The Board of Directors of the Colorado River Energy Distributors Association (CREDA) finds:

• WHEREAS, the federal Colorado River Storage Project (CRSP) hydropower and delivery systems were authorized by Congress to provide a wide range of significant benefits to millions of citizens in the West, including:

• Flood Control

• Irrigation

• Municipal water supply

• Interstate and international compact water deliveries

• Lake and stream recreation

• Blue ribbon trout fisheries

• River regulation

• Economic development

• Fish and wildlife propagation and mitigation

• Power generation and transmission

• WHEREAS, the Colorado River Basin is entering its sixth year of drought conditions.

• WHEREAS, Lake Powell water storage is at the lowest since it filled in 1980, and is approaching the level where power generation will cease.

• WHEREAS, funding for repayment of federal investment in the CRSP storage features and participating irrigation projects, and the operation and maintenance of the CRSP facilities and staff of the U.S. Bureau of Reclamation (USBR) and the Western Area Power Administration (Western) is provided through power revenues maintained in the Upper Colorado River Basin Fund.

• WHEREAS, a portion of the costs associated with the Colorado River Salinity Control program, the Glen Canyon Adaptive Management Program and the Upper Basin Endangered Fish Recovery Programs are funded through the Upper Colorado River Basin Fund.

• WHEREAS, a combination of reduced generation from the CRSP, costs associated with environmental programs and experiments, and wholesale power market conditions has resulted in unstable, non-sustainable cash flow conditions in the Upper Colorado River Basin Fund.

• WHEREAS, the effective CRSP power rate is increasing while resource deliveries are declining.

• NOW THEREFORE, BE IT RESOLVED on the 5th day of November, 2004: That CREDA encourages the USBR and Western to implement cost-cutting measures and strategies to improve the status of the Upper Colorado River Basin Fund and stabilize the CRSP power rate, and to work in partnership with the CRSP customers to develop an operational, financial, and rate-setting strategy that addresses the drought situation, creates a sustainable cash flow and maintains a viable power rate.

• BE IT FURTHER RESOLVED: CREDA encourages the passage of federal legislation which would make available non-reimbursable appropriations to the USBR and Western, to ensure ongoing funding of CRSP operations and other required annual funding obligations.