Subject: Customer Update – Section 402 of the Recovery Act
On March 4, a Request for Interest (RFI) seeking interest in potential projects that can be
funded using the Recovery Act authority to borrow up to $3.25 billion from the U.S.
Treasury was published in the Federal Register. These projects will provide Federal
funding in partnerships to develop transmission infrastructure that delivers renewable
energy to market across the West.
The full RFI, along with submission requirements for the RFI, is available on Western’s
Web site at http://www.wapa.gov. Questions regarding the RFI can be submitted by
e-mail at txrfi@wapa.gov. Answers will be posted on Western’s Web site to make them
available to all interested parties. Western should receive statements of interest by
April 3, 2009.
Also on March 4, through a second notice, also available at www.wapa.gov, Western
initiated the public process to develop practices and policies that implement this new
authority. Western is proposing to adopt a Transmission Infrastructure Program, with a
number of key principles, to guide the selection of projects approved for funding.
Projects would be in the public interest, not adversely impact system reliability, and offer
reasonable expectations that proceeds from the project will be adequate to meet
Western’s repayment obligations.
For repayment purposes, each transmission line and related facility project would be
treated as a distinct project to protect the rights of existing Reclamation projects and
customers. Revenues from each project would be the only source of repayment of the
associated loan for that project and expenses for ancillary services, and operation and
maintenance.
Western will host a public meeting to explain the proposed program and accept oral and
written comments on March 23, 2009, at 1 p.m. at Western’s Corporate Services Office,
12155 West Alameda Parkway, Lakewood, CO 80228. Participants may also join the
meeting via Webcast. Western will accept written comments any time during the
consultation and comment period which closes April 3, 2009.