“Nevadans have relied on power through Hoover dam and the Hoover Power Allocation Act for decades now and they will continue to be able to rely on it for decades to come,” Ensign said. “This bill will protect Nevadans energy needs now and into the future and I’m proud to be a part of that fight.” 

“Nevada families and businesses already greatly benefit from the energy provided by Hoover Dam and this extension will ensure that our State continues to have the ability to tap this reliable power source for generations to come.  This agreement also expands eligibility to Native American Tribes who have been unable to purchase power from Hoover Dam under existing rules,” said Berkley. “Proper management of our water resources along the Colorado is critical both for power generation and to protect threatened and endangered species, and this update will help address both these needs.”

“Hoover Dam is not only a historic land mark, but also an important source of energy for Nevada.  Hoover Dam has provided Nevadans with clean, renewable power for generations.  This legislation ensures Nevadans will receive this energy for generations to come.  I am pleased to join this bipartisan effort,” said Heller.

“Nevada relies heavily on the clean hydroelectric power created at the Hoover Dam, and even though power contracts don’t expire until 2017, it is important to move early on this issue so we can plan for the future,” Congresswoman Titus said.  “This legislation will ensure that Nevada continues to receive the power we need for decades to come.”

Overview

Hoover power is a vital power resource for consumers in Arizona, California, and Nevada.  Over 29 million people rely on this power, which is a clean renewable source of energy.  Since its construction, Hoover Dam power has been allocated by Act of Congress. Hoover power was first allocated by Congress in the Boulder Canyon Project Act of 1928. In 1984, Congress again allocated Hoover power through contracts with state, municipal and utility contractors.

These contracts will expire in 2017.  Passage of the proposed Hoover Power Allocation Act of 2009 is critical to ensuring the continued availability and reliability of Hoover power to the citizens of Arizona, California and Nevada.

Hoover power contractors pay for operation, maintenance, replacement, and equipment upgrades for Hoover Dam’s power facilities, and they will continue to do so under the Hoover Power Allocation Act of 2009.  To date, contractors from Nevada, Arizona and California have invested over $1.3 billion on Hoover Dam’s power facilities.  Additionally, contractors are committed to supporting the Lower Colorado River Multi-Species Conservation Program, which was enacted earlier this year, for the protection of 26 endangered, threatened and sensitive species on the lower Colorado River.

The 1984 Hoover Power Plant Act distributed Hoover power to the following contractors under three schedules:

Schedule A includes the original purchasers of Hoover power as authorized in the Boulder Canyon Project Act of 1928: Metropolitan Water District of Southern California; Cities of Los Angeles, Glendale, Pasadena and Burbank; Southern California Edison Company; Arizona Power Authority; Colorado River Commission of Nevada; and City of Boulder City, Nevada.

Schedule B includes contractors that advance-funded the Hoover power turbine upratings as authorized in the Hoover Power Plant Act of 1984:  State of California (Cities of Glendale, Pasadena, Burbank, Anaheim, Azusa,  Banning, Colton, Riverside, Vernon),  and States of Arizona and Nevada.

Schedule C governs allocations of excess energy, if any, to Arizona, California and Nevada as negotiated between the states and the federal government.

Distribution of Power under the Proposed Legislation

Under the proposed legislation, Congress would distribute Hoover power pursuant to Schedules A, B and C; however, each of the current Hoover contractors would contribute 5% of their Schedules A and B power to a pool that would be distributed under a new Schedule D.  Schedule D power would be allocated to federally recognized Indian Tribes and other eligible entities that do not currently purchase Hoover power.