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Alternative Financing Methods

Another way we show flexibility is with our alternative financing program. Western finances a significant amount of our purchase power and wheeling program through non-appropriated, alternative financing methods. This means that when Western must purchase power to meet contract terms to customers, we can sometimes accomplish this without asking Congress for financing.

Alternative financing includes bill crediting, which credits a customer's bill when the customer makes a payment on Western's behalf to a Western purchase power and wheeling supplier; net billing, which nets a customer's bill for services performed when Western acquires energy or wheeling from that customer; and reimbursements, which allow Western to use other Federal agency reimbursements for services to offset the cost of providing those services.

Another example is advanced customer funding, where a customer advances funds to Western or a generating agency for capital, operation and maintenance expenses, such as transformer replacements. This reduces our need to ask for Congressional appropriations for these types of projects and ensures timely operation and maintenance of the system.