WAPA » About » Financial information

Financial information

Western Area Power Administration ‚Äč's goal is to maintain the reliability and safety of its transmission system while managing power delivery costs and meeting our repayment responsibilities.

In partnership with affiliated generating agencies and customers, WAPA controls costs, coordinates funding agreements and prioritizes construction and rehabilitation projects.

Each year, Congress appropriates funds to finance operation and maintenance and construction and rehabilitation activities for many of our power systems. Because legislation requires that those who benefit from Federal investments repay the U.S. Treasury, we set power rates to recover all costs associated with our activities and generating agencies' power-related activities. Power revenue must also cover the Federal investment in power and transmission facilities (with interest) and certain costs assigned to power, such as aid to irrigation development.

Power revenue also funds portions of WAPA's purchase power and wheeling activities. Drought conditions and other factors sometimes require WAPA to purchase power from other suppliers to meet long-term firm power contract commitments.

As detailed in the "WAPA at a glance," operating revenues for FY 2014 were $1,357.8 million, including $932.5 million for sales of electric power. Operating expenses were $1,135.5 million. 

How is WAPA funded?

WAPA receives funding from a variety of sources, including annual Congressional appropriations, customer-advanced funding and alternative 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 supplier, and net billing, which nets a customer's bill after WAPA acquires energy or wheeling from that customer. WAPA also has the ability to use some power sale receipts to fund purchase power and wheeling.

Page Last Updated: 6/13/2016 7:06 PM