Integrated System Power Rates
The Administrator, Southwestern Power Administration (Southwestern), has prepared Current and Revised 2006 Power Repayment Studies which show the need for an increase in annual revenues to meet cost recovery criteria. Such increased revenues are needed primarily to cover increased investments and replacements in hydroelectric generating facilities and increased purchased power expenses. The Administrator has developed proposed Integrated System rates, which are supported by a rate design study, to recover the required revenues. The May 2006 Revised Study indicates that the proposed rates would increase annual system revenues approximately 25.9 percent from $136,267,400 to $171,505,848, over a three-year period to meet projected annual expenses and repay the investments in facilities over the required number of years.