Difference between revisions of "HYDROPOWER"

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The approximately $16.5 million per year of power revenues expended for the Glen Canyon Adaptive Management Program, the Upper Colorado River Recovery Implementation Program, and the San Juan Basin Recovery Program are expenses that are not built into the firm power rates. This arrangement benefits the programs in that they do not need to seek annual appropriations from Congress for these funds. However, this does have an impact to Western in times when firming power purchase expenses are high (due to drought or experimentation) because the moneys are transferred to the program and are not available to purchase the power needed to meet contractual requirements. The Basin Fund is managed by Western. Approximately $120 million in revenue is needed each year to fund Reclamation and Western operation and maintenance needs. Western is responsible for transmission and marketing of CRSP power, collecting payment for the power, and transfer of revenues for repayment to the United States Treasury Department. A change in the amount of available capacity or energy could potentially affect the revenue derived from the sale of energy and the contributions to the Basin Fund, or rates charged to power customers. [https://www.usbr.gov/uc/rm/crsp/index.html]
 
The approximately $16.5 million per year of power revenues expended for the Glen Canyon Adaptive Management Program, the Upper Colorado River Recovery Implementation Program, and the San Juan Basin Recovery Program are expenses that are not built into the firm power rates. This arrangement benefits the programs in that they do not need to seek annual appropriations from Congress for these funds. However, this does have an impact to Western in times when firming power purchase expenses are high (due to drought or experimentation) because the moneys are transferred to the program and are not available to purchase the power needed to meet contractual requirements. The Basin Fund is managed by Western. Approximately $120 million in revenue is needed each year to fund Reclamation and Western operation and maintenance needs. Western is responsible for transmission and marketing of CRSP power, collecting payment for the power, and transfer of revenues for repayment to the United States Treasury Department. A change in the amount of available capacity or energy could potentially affect the revenue derived from the sale of energy and the contributions to the Basin Fund, or rates charged to power customers. [https://www.usbr.gov/uc/rm/crsp/index.html]
  
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== How are the costs associated with experimentation and the environmental programs paid for? ==
! <h2 style="margin:0; background:#cedff2; font-size:120%; font-weight:bold; border:1px solid #a3b0bf; text-align:left; color:#000; padding:0.2em 0.4em;"> How are the costs associated with experimentation and the environmental programs paid for? </h2>
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*Costs incurred during experimentation, like funding dedicated to environmental programs, are booked as a non-reimbursable activity.
 
*Costs incurred during experimentation, like funding dedicated to environmental programs, are booked as a non-reimbursable activity.
 
*This means they can be booked as a constructive return (i.e. in lieu of an actual cash return) to the U.S. Treasury as a payment against the loan that was taken out to construct the CRPS units.
 
*This means they can be booked as a constructive return (i.e. in lieu of an actual cash return) to the U.S. Treasury as a payment against the loan that was taken out to construct the CRPS units.
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[[File:BasinFund.jpg|center|thumb|600px|http://gcdamp.com/images_gcdamp_com/2/23/Jeka_PPT_Western_CRPS_Aug_2013_AMWG.pdf]]   
 
[[File:BasinFund.jpg|center|thumb|600px|http://gcdamp.com/images_gcdamp_com/2/23/Jeka_PPT_Western_CRPS_Aug_2013_AMWG.pdf]]   
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== What happens if the amount in the Basin Fund falls below the amount necessary to purchase power for firm contracts? ==
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Some combination of the following:
 +
*Increase power rates through a CRC (cost recovery charge)
 +
*Increase power revenues through a re-operation of the CRSP facilities (i.e. relax environmental restrictions)
 +
*Reduce BOR and WAPA O&M funding
 +
*Reduce allocations for firm power contracts
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*Reduce funding for non-reimbursable activities
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==How has re-operation at Glen Canyon Dam affected power revenues?==
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*1996 EIS and MLFF
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*2016 LTEMP EIS
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==How much does the Federal Government make off of power revenues at Glen Canyon Dam?==
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*None
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*Legislation requires full cost recovery, meaning, total revenue equals total costs. Profits are not allowed.
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*Total annual revenue for the SLCA/IP is about $200 million/year [https://www.usbr.gov/uc/progact/amp/amwg/2016-08-24-amwg-meeting/Attach_08.pdf]
  
 
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[[File:CRSP generation v demand.JPG|center|thumb|600px|https://www.usbr.gov/uc/progact/amp/twg/2018-01-25-twg-meeting/AR04.pdf]]  
 
[[File:CRSP generation v demand.JPG|center|thumb|600px|https://www.usbr.gov/uc/progact/amp/twg/2018-01-25-twg-meeting/AR04.pdf]]  
 
  
 
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Revision as of 16:38, 25 October 2019




Generating Unit Flyaround- video clip USBR.jpg

Fly Around Video Clip of Generating Unit

Water Intake Diagram.jpg

The Hydropower Resource

Glen Canyon Dam is the second highest (710 feet) concrete-arch dam in the United States, second only to Hoover Dam which stands at 726 feet. The 26.2 million acre-feet of water storage capacity in Lake Powell, created by Glen Canyon Dam, serves as a ‘bank account’ of water that is drawn on in times of drought. This stored water has made it possible to successfully weather extended dry periods by sustaining the needs of cities, industries, and agriculture throughout the West.

Hydroelectric power produced by the dam’s eight generators helps meet the electrical needs of the West’s rapidly growing population. With a total capacity of 1,320 megawatts, Glen Canyon Powerplant produces around five billion kilowatt-hours of hydroelectric power annually which is distributed by the Western Area Power Administration to Wyoming, Utah, Colorado, New Mexico, Arizona, Nevada, and Nebraska. In addition, revenues from production of hydropower help fund many important environmental programs associated with Glen and Grand canyons.

The designation of Glen Canyon National Recreation Area in 1972, underscores the value and importance of the recreation benefits associated with Lake Powell and the Colorado River downstream of the dam. The GCNRA is managed by the National Park Service.

Glen Canyon Dam is the key water storage unit of the Colorado River Storage Project, one of the most complex and extensive river resource developments in the world. Without it, development of the Upper Colorado River Basin states’ portion of the Colorado River would not have been possible. [1]

LTEMP Resource Goal for the Hydropower Resource

Maintain or increase Glen Canyon Dam electric energy generation, load following capability, and ramp rate capability, and minimize emissions and costs to the greatest extent practicable, consistent with improvement and long-term sustainability of downstream resources.

Desired Future Condition for the Hydropower Resource

• Glen Canyon Dam capacity and energy generation is maintained and increased, so as to produce the greatest practicable amount of power and energy, consistent with the other DFCs.
• Ensure continued delivery of Glen Canyon Dam hydropower to the existing customers who have entered into long-term firm power contracts with WAPA.
• Ensure sufficient and efficient production of Glen Canyon Dam hydropower in order to provide the revenues to support the CRSP facilities and purposes.
• Maintain the operational flexibility (including but not limited to load following capability, ramp rates, and emergency operations allowances) that enable Reclamation and WAPA to meet the system operating and other regulatory requirements of WECC, North American Electric Reliability Corporation and the Federal Energy Regulatory Commission, as well as emergency operating criteria for safety and human health situations.
• Maximize the environmental benefits of hydropower generation at Glen Canyon Dam.
• Minimize carbon emissions through hydropower generation at Glen Canyon Dam.

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Hydropower - Online Training
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Updates

What is the Basin Fund?

The Upper Colorado River Basin Fund (Basin Fund) was established under Section 5 of the CRSP Act. The CRSP Act 'authorized a separate fund in the Treasury of the United States to be known as the Upper Colorado River Basin Fund... for carrying out provisions of this Act other than Section 8'. Money appropriated for construction of CRSP facilities, except recreation and fish and wildlife facilities constructed under Section 8, is transferred to the Basin Fund from the General Fund of the Treasury. Revenues derived from operation of the CRSP and participating projects are deposited in the Basin Fund. Most of the revenues come from sales of hydroelectric power and transmission services. The Basin Fund also receives revenues from M&I water service sales, rents, salinity funds from the Lower Colorado Basin (as a pass-through for the Colorado River Basin Salinity Control Program), and miscellaneous revenues collected in connection with the operation of the CRSP and participating projects. Revenues and appropriated funds are accounted for separately in the Basin Fund.

Basin Fund revenues must first be used to repay costs associated with the operation, maintenance, and replacements of, and emergency expenditures for, the CRSP initial units. The fund is then used to repay the United States Treasury Department for the following:

  • The construction costs of the CRSP initial units allocated to the power purpose (with interest thereon)
  • The construction costs of the CRSP initial units allocated to irrigation
  • A portion of salinity investment and operation costs
  • The construction costs of the participating projects allocated to the irrigation investment and above the irrigator's ability to pay

The Basin Fund also supports the following:

  • Cost sharing for Colorado River Basin Salinity Control Program (approximately $2.0 million annually)
  • The major portion of the cost of the Glen Canyon Adaptive Management Program (currently almost $9.5 million annually)
  • Cost sharing for the Upper Colorado and San Juan Endangered Fish Recovery Implementation Programs (currently approximately $7 million annually)
  • Water quality studies
  • Consumptive use studies

The approximately $16.5 million per year of power revenues expended for the Glen Canyon Adaptive Management Program, the Upper Colorado River Recovery Implementation Program, and the San Juan Basin Recovery Program are expenses that are not built into the firm power rates. This arrangement benefits the programs in that they do not need to seek annual appropriations from Congress for these funds. However, this does have an impact to Western in times when firming power purchase expenses are high (due to drought or experimentation) because the moneys are transferred to the program and are not available to purchase the power needed to meet contractual requirements. The Basin Fund is managed by Western. Approximately $120 million in revenue is needed each year to fund Reclamation and Western operation and maintenance needs. Western is responsible for transmission and marketing of CRSP power, collecting payment for the power, and transfer of revenues for repayment to the United States Treasury Department. A change in the amount of available capacity or energy could potentially affect the revenue derived from the sale of energy and the contributions to the Basin Fund, or rates charged to power customers. [2]

How are the costs associated with experimentation and the environmental programs paid for?

  • Costs incurred during experimentation, like funding dedicated to environmental programs, are booked as a non-reimbursable activity.
  • This means they can be booked as a constructive return (i.e. in lieu of an actual cash return) to the U.S. Treasury as a payment against the loan that was taken out to construct the CRPS units.
  • The amount WAPA returns to the Treasury for the construction of the CRSP units is finite and scheduled.
  • As the amount WAPA needs to return to the Treasury gets smaller, the amount of interest incorporated in the return also gets smaller.
  • As these amounts gets smaller over time, it reduces the amount WAPA can claim as a non-reimbursable return.
  • Over time, this reduces the amount of funding available for non-reimbursable activities like experimentation and environmental programs.

What happens if the amount in the Basin Fund falls below the amount necessary to purchase power for firm contracts?

Some combination of the following:

  • Increase power rates through a CRC (cost recovery charge)
  • Increase power revenues through a re-operation of the CRSP facilities (i.e. relax environmental restrictions)
  • Reduce BOR and WAPA O&M funding
  • Reduce allocations for firm power contracts
  • Reduce funding for non-reimbursable activities

How has re-operation at Glen Canyon Dam affected power revenues?

  • 1996 EIS and MLFF
  • 2016 LTEMP EIS

How much does the Federal Government make off of power revenues at Glen Canyon Dam?

  • None
  • Legislation requires full cost recovery, meaning, total revenue equals total costs. Profits are not allowed.
  • Total annual revenue for the SLCA/IP is about $200 million/year [3]

How does operations at Glen Canyon Dam fit into operations with other CRSP hydropower units?


Links and Information

WAPA Annual Reports

Presentations and Papers

2018

2017

2016

2015

2013

2010

2009

Adding Generation to the Bypass Tubes

What does it mean that "generation of hydroelectric power is an incident of the foregoing purposes" in the 1956 CRSP Act (43 U.S.C. § 620)?

In GRAND CANYON TRUST vs U.S. BUREAU OF RECLAMATION, Grand Canyon Trust asserted that “[h]ydropower is an incidental benefit of every other stated purpose of the dam,” citing 43 U.S.C. § 620. Pl. Reply at p. 39. This is not a correct statement of the law. The relevant portion of 43 U.S.C. § 620 provides “for the generation of hydroelectric power, as an incident of the foregoing purposes.” Congress did not provide that hydropower is “incidental to” or “an incidental benefit of” the Colorado River Storage Project. Hydropower is an “incident of” the other Congressionally defined purposes. Used in this manner and in this context, the word “incident” means “related to,” or “resulting from,” and does not mean that hydropower resources are an “incidental” or minor authorized purpose of the Colorado River Storage Project. [1]

Ramp rates and beach stability

Alvarez and Schmeeckle (2013) that found that the erosion of sandbars (the primary reason we have ramp rate restrictions at Glen) are not affected by ramp rates themselves. They found that erosion of sandbars is primarily caused by the higher velocity flows that washes the toe of the sandbar away which then causes the rest of the sandbar to slough off and fall into the river (i.e. mass failure). Having flows come up or go down more quickly than they do now will not increase this rate of erosion aside from the fact that the faster you can come up and go down allows you more time on peak at those higher velocity flows, which was identified as the causal factor of sandbar erosion.

Other Stuff

GRAPH- GCD levels.jpg
Reservoirs Hydro ColoradoRiver.jpg
USBR- Q& A on GCD Hydropower