ALTERNATIVE FINANCING METHODS
Another way we show flexibility is with our alternative financing program. WAPA finances a significant amount of our purchase power and wheeling program through non-appropriated, alternative financing methods. This means that when WAPA 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 WAPA’s behalf to a WAPA purchase power and wheeling supplier; net billing, which nets a customer’s bill for services performed when WAPA acquires energy or wheeling from that customer; and reimbursements, which allow WAPA 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 WAPA 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.
Last modified on September 7th, 2023