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Western, customers cope with record drought

Lake Powell at Hite Bay, 1999. (top) Lake Powell at Hite Bay, March 2004. Ongoing drought conditions have drained Lake Powell to its lowest level since 1970. (Photos courtesy of U.S. Bureau of Reclamation)

As winter approaches, hydropower marketers and utilities are joining skiers in praying for record snowfall throughout the western United States.

Western’s Colorado River Storage Project Management Center has been operating under severe conditions for six years and the situation has reached a critical point. Lake Powell is at 38 percent of capacity with the water surface elevation 129 feet below full pool level, its lowest water level since 1970.

Lower storage volumes in Lake Powell have caused a 30 percent loss of efficiency in Glen Canyon Dam’s generation capability. The Bureau of Reclamation now forecasts a 22 percent chance that continued drought will drain the lake to minimum power pool elevation within the next two and a half years. Such a loss would cause the generators to be shut down, a first in Western’s history.

Before panic sets in, consider that one wet year like 1983-84 could refill Lake Powell to 88 percent of capacity. According to Engineer Brian Young in the Desert Southwest Power Marketing Resources and Planning office, that would not be an “average” hydrologic cycle. Young recently made a presentation to DSW customers, updating them on the drought situation. Hydrology—the study of water’s movement from the earth to the atmosphere and back—is central to projecting future hydropower availability. “The good news,” he added, “is that we never get ‘average’ hydrology.”

Drought reduces customers’ allotment
Praying for rain, of course, does not constitute a drought response plan. Factoring the variable nature of hydropower into long-term firm electric power contracts, however, does. When hydrology or river operations affect the amount of energy available, Western has the flexibility to modify its commitments with adequate notice to customers.

The drought forced Western to lower its contract commitment to Salt Lake City Area/Integrated Project customers for the next 20-year contract term, starting Oct. 1, 2004. Allocations were reduced by 25 percent in the first year of the contract (FY 2005). Energy deliveries will then increase incrementally over the contract term.

Western has worked with customers for the last year to prepare for the allocation adjustment. Customers may ask Western to purchase firming power for them on the open market. Over the drought cycle, Western has dedicated substantial funds to fulfilling its contractual obligations. In FY03, SLCA/IP spent $80 million on power purchases, and expects power purchasing costs to be around $41 million in the current fiscal year.

Customers can buy the power from Western at a pass-through cost, taking advantage of Federal purchasing power. To save further money, said CRSP MC Resource Manager Clayton Palmer, Western is starting a strategic purchase program initiative. “If we develop a portfolio of long- and short-term purchases, maybe add in a little green power, we can firm our hydro resources at a lower cost,” he explained. “We can pass that savings on to customers.”

To supplement their Federal hydropower allocation, customers may choose to buy what they need from other sources or generate their own power. Western can assist customers with those options, too. Energy Services can connect customers with resources and technical support to develop renewable energy projects. The Public Renewables Partnership, in which Western participates, offers a wealth of information for organizations interested in purchasing certified renewable energy or green tags.

Efficiency, conservation protect water resources
Efficient water use is critical to mitigating the impact of the drought. Hoover Dam customers are studying equipment upgrades that could modestly increase capacity, efficiency and energy. Stainless steel wicket gates that allow more water into the generator and lower head turbines also offer reduced operations and maintenance costs. As a bonus, measures that improve generation and cut O&M costs will continue to benefit customers when the drought is over.

Water resources are vital not just to hydropower generation, but to every aspect of life, and no single agency can protect them for all purposes. Western has enlisted state water representatives and the Bureau of Reclamation to collaborate on a plan to keep Lake Powell’s elevation above the minimum power pool.

In the semi-arid West, saving water is the business of everyone who uses it—that is, everyone. Customers can do their part by educating themselves about water issues and conservation measures. Energy Services’ water conservation resources provide an excellent starting point for building a drought-resistant organization.