7423 - Laserfiche WebLink

Home Browse Search

38 ,I ,I I I I I I' I I i I I I I 1 I j I i increase not materialize. This procedure does, however, increase the risk of flood releases during the peak of the runoff. Fluctuating Releases Are Hade To Hatch Electricity Production To Demand And To Sell The Host Power The Western Area Power Administration (WAPA) markets and transmits the power generated at Glen Canyon Dam and other federal facilities. The marketing of power, and , the factors that shape the demand for and production of power at Glen Canyon Dam are many and complex. Refer to Appendix D for a more complete description. The CRSP Act directed that Glen Canyon Dam be operated to produce the greatest practical amount of power that could be sold at firm power and energy rates (long-term contracts for guaranteed supply). P9wer produced at Glen Canyon Dam provides electricity and helps to repay the cost of facilities and projects associated with the CRSP. Revenues collected from the sale of the power, municipal and industrial water supplies, and irrigation water are applied to the Upper Colorado River Basin Fund, established through Section 5 of the CRSP Act. These revenues provide for the repayment of the costs associated with the the initial federal investment, in- terest, portions of participating irrigation projects, and operation and maintenance functions. Annual repayment studies are made to determine if adjustments in the power and water rates are required. By law, rates for power generated by the CRSP must be set at the lowest. level consistent with sound business principles. Although this means that the CRSP gen- eration facilities cannot be operated "for profit," it does not preclude the generation of surplus annual revenues to be used for anticipated future costs. Power is produced on a fluctuating (peaking power) basis in order to increase the value of the electricity produced. This is done by releasing water and producing power when power is most needed during the day and its value is highest to consumers--generally in the morning and evening (Figure V-3.) Unlike many types of (non-hydroelectric) power generation facilities, the efficiency of power