89–010 

Calendar No. 615 

111TH CONGRESS REPORT " ! SENATE 2d Session 111–329 

HOOVER POWER ALLOCATION ACT 

SEPTEMBER 27, 2010.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany H.R. 4349] 

The Committee on Energy and Natural Resources, to which was 

referred the Act (H.R. 4349) to further allocate and expand the 

availability of hydroelectric power generated at Hoover Dam, and 

for other purposes, having considered the same, reports favorably 

thereon without amendment and recommends that the Act do pass. 

PURPOSE

The purpose of H.R. 4349 is to amend the Hoover Power Plant 

Act of 1984 (43 U.S.C. 619) to further allocate and expand the 

availability of hydroelectric power generated at Hoover Dam, and 

for other purposes. 

BACKGROUND AND NEED

The Boulder Canyon Project Act of 1928 (Public Law 70–642) authorized the Secretary of the Interior, among other things, to construct Hoover Dam and enter into contracts for the sale of power 

generated at the dam. In 1984, Congress enacted the Hoover Power 

Plant Act (Public Law 98–381) and, among other things, authorized 

the Secretary of Energy to allocate power produced at the dam. The 

1984 act recognizes three categories of power allocations: 

‘‘Schedule A’’ authorizes contracts to: Metropolitan Water District 

of southern California; California cities of Los Angeles, Glendale, 

Pasadena, and Burbank; Southern California Edison Company; Arizona Power Authority; Colorado River Commission of Nevada; and 

the City of Boulder City, Nevada. These contractors represent the 

original contractors for power from Hoover Dam. 


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‘‘Schedule B’’ authorizes contracts to: the southern California cities of Glendale, Pasadena, Burbank, Anaheim, Azusa, Banning, 

Colton, Riverside, and Vernon, as well as the States of Arizona and 

Nevada. 

‘‘Schedule C’’ allocates excess power production, if any, to the 

States of California, Arizona, and Nevada. 

The current power contracts were signed in 1987, and will expire 

in 2017. The approximate percentage of power delivered to each 

state is: 23.4 percent to Nevada; 19 percent to Arizona; and 57.6 

percent to California. 

H.R. 4349 allocates hydroelectric power generated at Hoover 

Dam to current power customers in Arizona, Nevada, and California in accordance with revised Schedules A, B, and C and creates a new pool of ‘‘Schedule D’’ power to be allocated to Indian 

tribes and other new entities. Two-thirds of the Scheduled D pool 

will be allocated in accordance with procedures developed by the 

Western Area Power Administration and the remaining one-third 

will be allocated in equal shares by the Arizona Power Authority 

for new contractors in Arizona, the Colorado River Commission of 

Nevada for new contractors in Nevada, and the Western Area 

Power Administration for new contractors in California. 

LEGISLATIVE HISTORY

H.R. 4349 was introduced by Representative Napolitano on December 16, 2009 and passed the House of Representatives by voice 

vote on June 8, 2010. Companion legislation, S. 2891, was introduced in the Senate by Senator Reid on December 16, 2009. The 

Subcommittee on Water and Power held a hearing on H.R. 4349 

and S. 2891 on June 9, 2010. The Committee on Energy and Natural Resources considered H.R. 4349 at its business meeting on 

July 21, 2010, and ordered it favorably reported without amendment. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on July 21, 2010, by voice vote of a quorum present, 

recommends that the Senate pass H.R. 4349. 

SECTION-BY-SECTION ANALYSIS

Section 1 sets forth the short title as the ‘‘Hoover Power Allocation Act of 2010’’. 

Section 2(a–c) amends section 105(a)(1) of the Hoover Power 

Plant Act of 1984 (43 U.S.C. 619a) (Hoover Power Act) by specifying that the new contracts for the allocation of power as provided 

in Schedules A, B, and C shall commence on October 1, 2017. Section 2 also designates specific, revised allocations to the existing 

contractors and States. 

Section 2(d) amends section 105(a) of the Hoover Power Act by 

adding a new subsection that establishes a new contingent capacity 

and firm energy pool designated as Schedule D for delivery beginning on October 1, 2017. Section 2(d) also specifies that the Western Area Power Administration (Western) shall allocate 66.7 percent of the Schedule D contingent capacity and firm energy to new 

entities or Indian tribes within 36 months of enactment of this Act. 


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Within 1 year of enactment, the Secretary of Energy shall make 

33.3 percent of the Schedule D contingent capacity and firm energy 

in equal allocations, available for delivery commencing October 1, 

2017 to the Arizona Power Authority for new allottees in the State 

of Arizona; the Colorado River Commission of Nevada for new 

allottees in the State of Nevada; and Western for new allottees 

with the State of California, provided that Western shall have thirty-six months to complete such allocation. New Schedule D contractors must execute the Boulder Canyon Project Implementation 

Agreement. Contracts must also include a provision requiring new 

contractors to pay a proportionate share of their State’s contribution to the cost of the Lower Colorado River Multi-Species Conservation Program. Any of the 66.7 percent of the Schedule D contingent capacity and firm energy that is not allocated and placed 

under contract by October 1, 2017 will be returned in the same proportion to the contractors in Schedule A and Schedule B. Any of 

the 33.3 percent of Schedule D contingent capacity and firm energy 

that is to be distributed within the States of Arizona, Nevada, and 

California that is not allocated and placed under contract by October 1, 2017, shall be returned to the Schedule A and Schedule B 

contractors within the State in which the Schedule D contingent 

capacity and firm energy were to be distributed. 

Sections 2(e) and 2(f) make technical and conforming changes to 

the Hoover Power Act. 

Section 2(g) amends the Hoover Power Act to specify the expiration date for the new allocation contracts as September 30, 2067. 

Western is also authorized and required to collect a pro rata share 

of Hoover Dam repayable advances from new allottees prior to October 1, 2017. Further, transactions with an independent system 

operator are permitted. 

Section 2(h) amends section 105(b) of the Hoover Power Act to 

change the year ‘‘2017’’ to ‘‘2067’’. 

Section 2(i) amends section 105(c) of the Hoover Power Act to 

specify the procedures the Secretary of Energy is to follow in order 

to make available the contingent capacity and firm energy if an existing contractor fails to accept an offered contract. 

Section 2(j) amends the Hoover Power Act by stating that the obligation of the Secretary to Energy to deliver contingent capacity 

and firm energy is subject to the availability of the water needed 

to produce the contingent capacity and firm energy. 

Section 2(k) repeals sections 105(e) and (f) of the Hoover Power 

Act. 

Section 2(l) provides for continued congressional oversight regarding the terms and conditions of the governing contracts for 

power generated at Hoover Dam until September 30, 2067. 

Sections 2(m) and 2(n) make conforming changes to the Hoover 

Power Act. 

Section 3 sets forth the requirements for compliance with the 

Statutory Pay-As-You-Go Act of 2010. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 


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H.R. 4349—Hoover Power Allocation Act of 2010 

H.R. 4349 would update the statutory allocation of electric power 

generated at the Hoover Dam among various users. The current allocation expires at the end of fiscal year 2017. The legislation 

would increase the amount of electricity to be marketed by the 

Western Area Power Administration (WAPA) and would allocate 

much of the dam’s currently unallocated electricity to Native American Indian tribes and other entities. The revised allocations would 

remain in effect from 2017 through 2067. Based on information 

from WAPA, CBO estimates that implementing this act would have 

a negligible effect on net direct spending and spending subject to 

appropriation. 

In the absence of this legislation, CBO expects that WAPA would 

allocate the electricity from the Hoover Dam by regulation. CBO 

estimates that any differences between the electricity allocation 

under H.R. 4349 and the allocations developed under such regulations would have a negligible effect on offsetting receipts (a credit 

against direct spending) from electricity sales because the agency 

is required by law to keep electric rates as low as possible while 

recovering all costs of generation and marketing over time. CBO 

also estimates that implementing the act would have no significant 

impact on WAPA’s administrative costs, which are funded by appropriations and offset by proceeds from the sale of electricity. 

The Statutory Pay-As-You-Go Act of 2010 establishes budget reporting and enforcement procedures for legislation affecting direct 

spending or revenues. The net changes in outlays that are subject 

to those pay-as-you-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4349 AS ORDERED REPORTED BY THE 

SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON JULY 21, 2010 

By fiscal year, in millions of dollars— 

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010– 

2015 

2010– 

2020 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-AsYou-Go Impact 0 0 0 0 0 0 0 0 0 0 0 0 0 

H.R. 4349 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on State, local, or tribal governments. 

On May 20, 2010, CBO transmitted a cost estimate for H.R. 

4349, as ordered reported by the House Committee on Natural Resources. The two versions of the legislation are similar and the 

CBO cost estimates are the same. 

The CBO staff contact for this estimate is Kathleen Gramp. The 

estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

H.R. 4349. 


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The bill is not a regulatory measure in the sense of imposing 

Government-established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of H.R. 4349 as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

H.R. 4349, as ordered reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff 

benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

STATEMENT OF TIMOTHY J. MEEKS, ADMINISTRATOR, WESTERN AREA POWER ADMINISTRATION, DEPARTMENT OF ENERGY

Madam Chairwoman and Members of the Subcommittee, 

I am Timothy J. Meeks, Administrator of the United 

States Department of Energy’s Western Area Power Administration (Western). I am pleased to be here today to 

discuss S. 2891, the Hoover Power Allocation Act of 2009. 

This legislation seeks to amend the Hoover Power Plant 

Act of 1984. The legislation proposes revised allocations of 

the generation capacity and energy from the Hoover Dam 

power plant, a feature of the Boulder Canyon Project 

(BCP), after the existing contracts expire on September 30, 

2017. 

Western’s mission is to market and deliver reliable, costbased hydroelectric power from facilities such as Hoover 

Dam. Hoover Dam was authorized and constructed in accordance with the Boulder Canyon Project Act of 1928. 

Pursuant to this Act, the Secretary of the Interior was authorized to contract for the sale of generation based upon 

general regulations as he may prescribe. Subsequent 

power sales contracts were executed that committed Hoover power through May 31, 1987. With the passage of the 

Hoover Power Plant Act of 1984, Congress authorized the 

Secretary of the Interior to implement an uprating program, which increased the generation capacity of the Hoover Dam facilities, to make additional facility modifications, and to resolve issues over the disposition of Hoover 

power post-1987. In the 1984 Act, Congress directed the 

Secretary of Energy to offer renewal contracts to existing 

contractors and provided guidance for marketing the capacity gained through the uprating program. 

Western proceeded to market Hoover Dam power and 

entered into 30-year term contracts with the current Hoover contractors in accordance with the Hoover Power Plant 

Act of 1984 and Western’s Conformed General Consolidated Power Marketing Criteria. This process resulted in 

the allocation of 1,951 megawatts of contingent capacity 


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with an associated 4,527,001 megawatt-hours of firm energy. Contingent capacity is capacity that is available on 

an as-available basis, while the firm energy entails Western’s assurance to deliver. 

The Hoover power plant is a significant hydroelectric 

power resource in the desert southwest with a maximum 

rated capacity of 2,074 megawatts. Under existing Federal 

law and policy, Western markets Hoover power at cost. 

Hoover power is hydropower and is considered ‘‘clean energy’’ with a minimal carbon footprint. The Hoover Dam 

power plant is able to ramp up and down rapidly and is 

used by contractors for various power-related ancillary 

services. For these reasons, Hoover power is an extremely 

valuable resource for power contractors in the southwestern United States. 

The existing power sales contracts between Western and 

the contractors will expire on September 30, 2017. As this 

expiration date becomes more prominent on the planning 

horizon, efforts have progressed among both Federal and 

non-Federal sectors to determine the allocation of Hoover 

Dam power after 2017. 

In accordance with policy and existing Federal law, 

Western’s post-2017 power allocation effort is composed of 

a series of proposals introduced to the public through Federal Register notices, public information forums and public 

comment forums. Western makes policy decisions only 

after all interested parties have been provided ample opportunity to be engaged in the process and public input 

has been carefully considered to develop new Hoover Dam 

allocations that are in the public’s best interest and provide the most widespread use of this Federal resource. 

Western’s public process to allocate Hoover Dam electricity was initiated on November 20, 2009, in a Federal 

Register notice that proposes several key aspects of the allocation effort. Among other things, this Federal Register 

notice proposes the application of Western’s Energy Planning and Management Program, extends a major percentage of the marketable resource to existing contractors, reserves an approximate 5 percent resource pool to be allocated to new contractors, and provides for 30-year contract 

terms. Western conducted three public information forums 

from December 1–3, 2009. These public information forums 

were well attended by current customers and interested 

parties and engaged the attendees through question and 

answer sessions. Public comment forums were held from 

January 19–21, 2010. Interested parties were provided an 

opportunity to submit comments related to Western’s proposals contained in the November Federal Register notice. 

The comment period was extended from January 29, 2010, 

to September 30, 2010, via a Federal Register notice dated 

April 16, 2010. Western is in the process of reviewing the 

submissions received to date. Depending on the public 

input received, Western projects that some initial decisions 

will be made later this year. In the event that a resource 

pool is established, Western will conduct a public process 


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to determine what marketing criteria would be applicable 

to the disposition of the resource pool. Western projects 

that final allocations will be determined and contracts executed by the spring of 2013, giving other entities time to 

plan prior to the expiration of the contracts in 2017. 

Western has reviewed S. 2891. There are several similarities between the draft legislation and Western’s initial 

proposals brought forward in the November Federal Register notice, and there are some distinct departures. To 

provide background that may be useful to the Subcommittee members as this bill is considered, I’ll address 

some of these differences in my comments. 

All of Western’s allocation efforts are open to public participation and conducted in accordance with the Administrative Procedures Act. At each stage of the process, Western proposes actions and/or policy to be considered and is 

open for public comment and input. Western believes soliciting and integrating the public input into policy decisions 

allows Western to progress to results that are in the 

public’s best interest and lead to the most widespread use 

of this resource. 

S. 2891 directs Western to allocate certain amounts of 

Hoover power within eighteen (18) months after enactment. Based on historical practice and in review of Western’s marketing project plans, an 18-month time frame 

may not be sufficient to thoroughly solicit and integrate 

public input into our marketing criteria and final allocations. Western supports the action that the House of Representatives Committee on Natural Resources took on H.R. 

4349, which revised the amount of time allowed for the allocation of power to new customers from 18 months to thirty-six (36) months after enactment. 

Western has 15 current contractors who receive an allocation of Hoover power. Two of those existing contractors 

are the Colorado River Agency (CRC) and the Arizona 

Power Authority (APA). APA and CRC sub-allocate their 

allocations to customers under State prescribed guidelines 

and regulations. Both S. 2891 and Western’s administrative effort propose an amount of resource to be allocated to 

new customers. Western’s process affords the opportunity 

of full public input and ensures all interested parties are 

considered in the power’s allocation. Western supports the 

House of Representatives Committee on Natural Resources 

elimination of language in H.R. 4349 that would have required a state role in developing criteria associated with 

the allocation of power to new customers. This language 

potentially restricted the open public process for creating 

marketing criteria for those power allocations. Western 

has received numerous written comments and statements 

from Native American tribes expressing concern that their 

interests have not yet been fully vetted and considered. In 

recent history, tribes have been active in Western’s remarketing efforts, and one goal of Western’s Strategic Plan is 

to seek partnerships with tribes on numerous initiatives. 

I believe that soliciting input from tribes and other entities 


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that do not have an allocation of Hoover power is in the 

public interest. Western has identified 59 federally recognized Native American Tribes in the BCP marketing area 

and is in the process of ensuring they are afforded an opportunity to participate in the public process. Western supports the revision made to the House version of this bill 

that expressly provides for the tribes to contract directly 

with Western to obtain a Hoover allocation. 

S. 2891 would direct that Hoover’s full maximum rating 

of 2,074 megawatts of capacity be allocated to Hoover customers in a multi-faceted approach. As described in Western’s November 20, 2009, Federal Register notice, Western 

proposes to market 2,044 megawatts of contingent capacity; 30 megawatts below the maximum rating. The retention of 30 megawatts of contingent Hoover Dam capacity 

for use by Western for project integration purposes would 

assist in providing the tools needed to meet our mission 

and statutory requirement of delivering reliable Federal 

hydro-generation. Western manages multiple federally 

owned generation and transmission projects in the Desert 

Southwest on a minute-by-minute basis. While these 

projects are financially segregated, they are operated as an 

integrated system. This 30-megawatt capacity to be held 

by the Federal Government would provide significant benefit to the operation of the integrated projects and the 

Western Area Lower Colorado balancing authority that 

Western operates. Should Western be unable to retain approximately 30 megawatts, Western expects to procure replacement power from the market at a higher cost, if it is 

available. These higher costs would in turn be passed 

through to Western’s customers in the form of higher 

rates. 

S. 2891 would direct that the existing contractual 

amounts totaling 4,527,001 megawatt-hours annually be 

allocated. In consultation with the Bureau of Reclamation 

(Reclamation) and in review of the most recent hydrologic 

studies, Western observed and proposed that 4,116,000 

megawatt-hours would better align with the actual availability of the resource. Western’s historical practice is to 

market an amount of generation that is based upon projected available generation. Remarketing the existing 

4,527,001 megawatt-hours is possible; however, the 

4,527,001 megawatt-hour level of generation has only been 

achieved a few times in the last 30 years. Reclamation’s 

forecast studies exhibit that this level of generation would 

be fairly improbable. 

S. 2891 expressly requires that each contract offered to 

a new allottee for Hoover Dam power should require the 

new allottee to execute the Boulder Canyon Project Implementation Agreement Contract No. 95–PAO–10616. Western finds significant value in the provisions and results of 

the Implementation Agreement. However, this agreement 

was constructed for unique circumstances that existed in 

1994. Should we retain this feature, I recommend that the 

current Implementation Agreement be evaluated and poVerDate Mar 15 2010 00:50 Oct 05, 2010 Jkt 089010 PO 00000 Frm 00008 Fmt 6659 Sfmt 6969 E:\HR\OC\SR329.XXX SR329

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tentially revised to accommodate current conditions. We 

support the universal benefits achieved by the Implementation Agreement and will work with our customers to determine the appropriate documentation to meet all of our 

customers’ needs; both current and future. 

S. 2891 expressly requires that each contract offered to 

a new allottee for Hoover Dam power includes a provision 

requiring the new allottee to pay a proportional share of 

its State’s funding contribution for the Lower Colorado 

River Multi-Species Conservation Program, known as the 

LCR MSCP. 

The LCR MSCP is a 50-year, multi-stakeholder, Federal 

and non-Federal partnership, responding to the need to 

balance the use of lower Colorado River water resources 

and the conservation of native species and their habitats 

in compliance with the Endangered Species Act (ESA). The 

LCR MSCP is a comprehensive approach to species protection developed after nearly a decade of work. This program 

is funded on a cost-share basis comprised of 50-percent 

Federal and 50-percent non-Federal. The States of Arizona, California, and Nevada have worked internally with 

water and power customers to fund each State’s respective 

share. S. 2891 recognizes these funding requirements and 

obligates new power customers to contribute to this funding in a proportional manner. Supporters of S. 2891 note 

that the 50-year obligation of the LCR MSCP is, in part, 

reason to proceed with 50-year Hoover power supply contracts. Western’s position is that the 50-year LCR MSCP 

term need not coincide with the Hoover Dam power sales 

contracts’ term. The adoption of a 50-year contract term 

could potentially exclude evolving classes of customers in 

decades to come. The modern day electrical industry is dynamic in its regulations, technologies, operations and participants. The landscape of potential customers in decades 

to come has the capability to yield new prospective customers, and we strive to meet the needs of all our customers; existing and future. 

Western respectfully recognizes that our administrative 

process is not the exclusive means of allocating Hoover 

power. I would welcome the opportunity to work with this 

Subcommittee to address the technical concerns I have 

raised as work continues on this legislation. In the absence 

of congressional action, Western will uphold its authority 

and responsibility to market Hoover power consistent with 

historical statutes and in concert with the rules and regulations as the Secretary of Energy prescribes. 

This concludes my prepared remarks. I would be pleased 

to answer any questions you or Members of the Subcommittee might have. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill H.R. 

4349, as ordered reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is 


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printed in italic, existing law in which no change is proposed is 

shown in roman): 

THE HOOVER POWER PLANT ACT OF 1984 

(August 17, 1984, Public Law 98–381, 98 Stat. 1333, 43 U.S.C. 619; 

as amended by the Act of October 24, 1992, Public Law 102–486, 

106 Stat, 2776) 

AN ACT To authorize the Secretary of the Interior to construct, operate, and 

maintain certain facilities at Hoover Dam, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, 

SECTION 1. This Act may be cited as the ‘‘Hoover Power Plant 

Act of 1984’’. 

TITLE I 

* * * * * * * 

SEC. 105. (a)(1) The Secretary of Energy shall offer: 

(A) To each contractor for power generated at Hoover Dam 

a ørenewal¿ contract for delivery commencing øJune 1, 1987¿ 

October 1, 2017, of the amount of capacity and firm energy 

specified for that contractor in the following table: 

øSCHEDULE A

øLONG TERM CONTINGENT CAPACITY AND ASSOCIATED FIRM ENERGY

RESERVED FOR RENEWAL CONTRACT OFFERS TO CURRENT BOULDER

CANYON PROJECT CONTRACTORS

øContractor 

Contingent capacity 

(kW) 

Firm energy 

(thousands of kWh) 

Summer Winter Total 

Metropolitan Water District of Southern California ............... 247,500 904,382 387,592 1,291,974 

City of Los Angeles ................................................................ 490,875 488,535 209,658 698,193 

Southern California Edison Company .................................... 277,500 175,486 75,208 250,694 

City of Glendale ..................................................................... 18,000 47,398 20,313 67,711 

City of Pasadena .................................................................... 11,000 40,655 17,424 58,079 

City of Burbank ...................................................................... 5,125 14,811 6,347 21,158 

Arizona Power Authority ......................................................... 189,000 452,192 193,797 645,989 

Colorado River Commission of Nevada ................................. 189,000 452,192 193,797 645,989 

United States, for Boulder City ............................................. 20,000 56,000 24,000 80,000 

Totals ............................................................................. 1,448,000 2,631,651 1,128,136 3,759,787¿ 

SCHEDULE A

LONG-TERM SCHEDULE A CONTINGENT CAPACITY AND ASSOCIATED

FIRM ENERGY FOR OFFERS OF CONTRACTS TO BOULDER CANYON

PROJECT CONTRACTORS

Contractor 

Contingent capacity 

(kW) 

Firm energy 

(thousands of kWh) 

Summer Winter Total 

Metropolitan Water District of Southern California ............... 249,948 859,163 368,212 1,227,375 

City of Los Angeles ................................................................ 495,732 464,108 199,175 663,283 

Southern California Edison Company .................................... 280,245 166,712 71,448 238,160 

City of Glendale ..................................................................... 18,178 45,028 19,297 64,325 

City of Pasadena .................................................................... 11,108 38,622 16,553 55,175 


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Contractor 

Contingent capacity 

(kW) 

Firm energy 

(thousands of kWh) 

Summer Winter Total 

City of Burbank ...................................................................... 5,176 14,070 6,030 20,100 

Arizona Power Authority ......................................................... 190,869 429,582 184,107 613,689 

Colorado River Commission of Nevada ................................. 190,869 429,582 184,107 613,689 

United States, for Boulder City ............................................. 20,198 53,200 22,800 76,000 

Totals ............................................................................. 1,462,323 2,500,067 1,071,729 3,571,796 

ø(B) To purchasers in the States of Arizona, Nevada and 

California eligible to enter into such contracts under section 5 

of the Boulder Canyon Project Act, contracts for delivery commencing June 1, 1987, or as it thereafter becomes available, of 

capacity resulting from the uprating program and for delivery 

commencing June 1, 1987, of associated firm energy as specified in the following table: 

øSCHEDULE B

øCONTINGENT CAPACITY RESULTING FROM THE UPRATING PROGRAM

AND ASSOCIATED FIRM ENERGY

øState Contingent capacity 

Firm energy 

(thousands of kWh) 

Summer Winter Total 

Arizona .................................................................................... 188,000 148,000 64,000 212,000 

California ................................................................................ 127,000 99,850 43,364 143,214 

Nevada ................................................................................... 188,000 288,000 124,000 412,000 

Totals ............................................................................. 508,000 535,850 231,364 767,214 

øProvided, however, That in the case of Arizona and Nevada, 

such contracts shall be offered to the Arizona Power Authority 

and the Colorado River Commission of Nevada, respectively, as 

the agency specified by State law as the agent of such State 

for purchasing power from the Boulder Canyon project: Provided further, That in the case of California, no such contract 

under this subparagraph (B) shall be offered to any purchaser 

who is offered a contract for capacity exceeding 20,000 kilowatts under subparagraph (A) of this paragraph.¿ 

(B) To each existing contractor for power generated at Hoover 

Dam, a contract, for delivery commencing October 1, 2017, of 

the amount of contingent capacity and firm energy specified for 

that contractor in the following table: 

SCHEDULE B

LONG-TERM SCHEDULE B CONTINGENT CAPACITY AND ASSOCIATED

FIRM ENERGY FOR OFFERS OF CONTRACTS TO BOULDER CANYON

PROJECT CONTRACTORS

Contractor 

Contingent capacity 

(kW) 

Firm energy 

(thousands of kWh) 

Summer Winter Total 

City of Glendale ..................................................................... 2,020 2,749 1,194 3,943 

City of Pasadena .................................................................... 9,089 2,399 1,041 3,440 

City of Burbank ...................................................................... 15,149 3,604 1,566 5,170 

City of Anaheim ..................................................................... 40,396 34,442 14,958 49,400 

City of Azusa .......................................................................... 4,039 3,312 1,438 4,750 

City of Banning ...................................................................... 2,020 1,324 576 1,900 


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Contractor 

Contingent capacity 

(kW) 

Firm energy 

(thousands of kWh) 

Summer Winter Total 

City of Colton ......................................................................... 3,030 2,650 1,150 3,800 

City of Riverside .................................................................... 30,296 25,831 11,219 37,050 

City of Vernon ........................................................................ 22,218 18,546 8,054 26,600 

Arizona .................................................................................... 189,860 140,600 60,800 201,400 

Nevada ................................................................................... 189,860 273,600 117,800 391,400 

Totals ............................................................................. 507,977 509,057 219,796 728,853 

(C) To the Arizona Power Authority and the Colorado River 

Commission of Nevada and to purchasers in the State of California eligible to enter into such contracts under section 5 of 

the Boulder Canyon Project Act, contracts for delivery commencing øJune 1, 1987¿ October 1, 2017, of such energy generated at Hoover Dam as is available respectively to the States 

of Arizona, Nevada, and California in excess of 4,501.001 million kilowatthours in any year of operation (hereinafter called 

excess energy) in accordance with the following table: 

øSCHEDULE C

øEXCESS ENERGY

øPriority of entitlement to excess energy State 

øFirst: Meeting Arizona’s first priority right to delivery of excess energy which is 

equal in each year of operation to 200 million kilowatthours: Provided, however, That in the event excess energy in the amount of 200 million 

kilowatthours is not generated during any year of operation, Arizona shall accumulate a first right to delivery of excess energy subsequently generated in 

an amount not to exceed 600 million kilowatthours, inclusive of the current 

year’s 200 million kilowatthours. Said first right of delivery shall accrue at a 

rate of 200 million kilowatthours per year for each year excess energy in the 

amount of 200 million kilowatthours is not generated, less amounts of excess 

energy delivered.

Arizona 

Second: Meeting Hoover Dam contractual obligations under schedule A of section 

105(a)(1)(A) and under schedule B of section 105(a)(1)(B) not exceeding 26 

million kilowatthours in each year of operation.

Third: Meeting the energy requirements of the three States, such available excess 

energy to be divided equally among the States.

Arizona, Nevada, California¿ 

SCHEDULE C

EXCESS ENERGY

Priority of entitlement to excess energy State 

First: Meeting Arizona’s first priority right to delivery of excess energy which is 

equal in each year of operation to 200 million kilowatthours: Provided, That in 

the event excess energy in the amount of 200 million kilowatthours is not 

generated during any year of operation, Arizona shall accumulate a first right 

to delivery of excess energy subsequently generated in an amount not to exceed 600 million kilowatthours, inclusive of the current year’s 200 million 

kilowatthours. Said first right of delivery shall accrue at a rate of 200 million 

kilowatthours per year for each year excess energy in an amount of 200 million kilowatthours is not generated, less amounts of excess energy delivered.

Arizona 

Second: Meeting Hoover Dam contractual obligations under Schedule A of subsection (a)(1)(A), under Schedule B of subsection (a)(1)(B), and under Schedule D of subsection (a)(2), not exceeding 26 million kilowatthours in each year 

of operation..

Arizona, Nevada, and California 

Third: Meeting the energy requirements of the three States, such available excess 

energy to be divided equally among the States.

Arizona, Nevada, and California 


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13 

(2)(A) The Secretary of Energy is authorized to and shall create 

from the apportioned allocation of contingent capacity and firm energy adjusted from the amounts authorized in this Act in 1984 to 

the amounts shown in Schedule A and Schedule B, as modified by 

the Hoover Power Allocation Act of 2010, a resource pool equal to 

5 percent of the full rated capacity of 2,074,000 kilowatts, and associated firm energy, as shown in Schedule D (referred to in this section as ‘Schedule D contingent capacity and firm energy’): 

SCHEDULE D

LONG-TERM SCHEDULE D RESOURCE POOL OF CONTINGENT CAPACITY

AND ASSOCIATED FIRM ENERGY FOR NEW ALLOTTEES

State 

Contingent 

capacity 

(kW) 

Firm energy 

(thousands of kWh) 

Summer Winter Total 

New Entities Allocated by the Secretary of Energy ............... 69,170 105,637 45,376 151,013 

New Entities Allocated by State: 

Arizona ........................................................................... 11,510 17,580 7,533 25,113 

California ....................................................................... 11,510 17,580 7,533 25,113 

Nevada .......................................................................... 11,510 17,580 7,533 25,113 

Totals .................................................................... 103,700 158,377 67,975 226,352 

(B) The Secretary of Energy shall offer Schedule D contingency 

capacity and firm energy to entities not receiving contingent capacity and firm energy under subparagraphs (A) and (B) of paragraph 

(1) (referred to in this section as ‘new allottees’) for delivery commencing October 1, 2017 pursuant to this subsection. In this subsection, the term ‘the marketing area for the Boulder City Area 

Projects’ shall have the same meaning as in appendix A of the General Consolidated Power Marketing Criteria or Regulations for 

Boulder City Area Projects published in the Federal Register on December 28, 1984 (49 Federal Register 50582 et seq.) (referred to in 

this section as the ‘Criteria’). 

(C)(i) Within 36 months of the date of enactment of the Hoover 

Power Allocation Act of 2010, the Secretary of Energy shall allocate 

through the Western Area Power Administration (referred to in this 

section as ‘Western’), for delivery commencing October 1, 2017, for 

use in the marketing area for the Boulder City Area Projects 66.7 

percent of the Schedule D contingent capacity and firm energy to 

new allottees that are located within the marketing area for the 

Boulder City Area Projects and that are— 

(I) eligible to enter into contracts under section 5 of the Boulder Canyon Project Act (43 U.S.C. 617d); or 

(II) federally recognized Indian tribes. 

(ii) In the case of Arizona and Nevada, Schedule D contingent capacity and firm energy for new allottees other than federally recognized Indian tribes shall be offered through the Arizona Power Authority and the Colorado River Commission of Nevada, respectively. 

Schedule D contingent capacity and firm energy allocated to federally recognized Indian tribes shall be contracted for directly with 

Western. 

(D) Within 1 year of the date of enactment of the Hoover Power 

Allocation Act of 2010, the Secretary of Energy also shall allocate, 

for delivery commencing October 1, 2017, for use in the marketing 


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area for the Boulder City Area Projects 11.1 percent of the Schedule 

D contingent capacity and firm energy to each of— 

(i) the Arizona Power Authority for allocation to new allottees 

in the State of Arizona; 

(ii) the Colorado River Commission of Nevada for allocation 

to new allottees in the State of Nevada; and 

(iii) Western for allocation to new allottees within the State 

of California, provided that Western shall have 36 months to 

complete such allocation. 

(E) Each contract offered pursuant to this subsection shall include 

a provision requiring the new allottee to pay a proportionate share 

of its State’s respective contribution (determined in accordance with 

each State’s applicable funding agreement) to the cost of the Lower 

Colorado River Multi-Species Conservation Program (as defined in 

section 9401 of the Omnibus Public Land Management Act of 2009 

(Public Law 111–11; 123 Stat. 1327)), and to execute the Boulder 

Canyon Project Implementation Agreement Contract No. 95–PAO– 

10616 (referred to in this section as the ‘Implementation Agreement’). 

(F) Any of the 66.7 percent of Schedule D contingent capacity and 

firm energy that is to be allocated by Western that is not allocated 

and placed under contract by October 1, 2017, shall be returned to 

those contractors shown in Schedule A and Schedule B in the same 

proportion as those contractors’ allocations of Schedule A and 

Schedule B contingent capacity and firm energy. Any of the 33.3 

percent of Schedule D contingent capacity and firm energy that is 

to be distributed within the States of Arizona, Nevada, and California that is not allocated and placed under contract by October 

1, 2017, shall be returned to the Schedule A and Schedule B contractors within the State in which the Schedule D contingent capacity and firm energy were to be distributed, in the same proportion 

as those contractors’ allocations of Schedule A and Schedule B contingent capacity and firm energy. 

ø(2)¿ (3) The total obligation of the Secretary of Energy to deliver 

firm energy pursuant to øschedule A of section 105(a)(1)(A) and 

schedule B of section 105(a)(1)(B)¿ paragraphs (1)(A), (1)(B), and 

(2) is 4,527.001 million kilowatthours in each year of operation. To 

the extent that the actual generation at Hoover Powerplant in 

øany¿ each year of operation (less deliveries thereof to Arizona required by its first priority under øschedule C¿ Schedule C of section 105(a)(1)(C) whenever actual generation in any year of operation is in excess of 4,501.001 million kilowatthours) is less than 

4,527.001 million kilowatthours, such deficiency shall be borne by 

the holders of contracts under said øschedules A and B¿ Schedules 

A, B, and D in the ratio that the sum of the quantities of firm energy to which each contractor is entitled pursuant to said schedules 

bears to 4,527.001 million kilowatthours. At the request of any 

such contractor, the Secretary of Energy will purchase energy to 

meet that contractor’s deficiency at such contractor’s expense. 

ø(3)¿ (4) Subdivision E of the ‘‘General Consolidated Power Marketing Criteria or Regulations for Boulder City Area Projects’’ published in the Federal Register May 9, 1983 (48 Federal Register 

commencing at 20881), hereinafter referred to as the ‘‘Criteria’’ or 

as the ‘‘Regulations’’ shall be deemed to have been modified to conform to this section. The Secretary of Energy shall cause to be inVerDate Mar 15 2010 00:50 Oct 05, 2010 Jkt 089010 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\SR329.XXX SR329

sroberts on DSK3CLS3C1PROD with HEARING
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cluded in the Federal Register a notice conforming the text of said 

Regulations to such modifications.¿ 

(4) Subdivision E of the Criteria shall be deemed to have been 

modified to conform to this section, as modified by the Hoover 

Power Allocation Act of 2010. The Secretary of Energy shall cause 

to be included in the Federal Register a notice conforming the text 

of the regulations to such modifications. 

ø(4)¿ (5) Each contract offered under subsection (a)(1) of this section shall: 

ø(A) expire September 30, 2017;¿ 

(A) in accordance with section 5(a) of the Boulder Canyon 

Project Act (43 U.S.C. 617d(a)), expire September 30, 2067; 

(B) not restrict use to which the capacity and energy contracted for by the Metropolitan Water District of Southern 

California may be placed within the State of California: Provided, That to the extent practicable and consistent with sound 

water management and conservation practice, the Metropolitan 

Water District of Southern California øshall use¿ shall allocate 

such capacity and energy to pump available Colorado River 

water prior to using such capacity and energy to pump California State water project water; øand¿ 

(C) conform to the applicable provisions of subdivison E of 

the Criteria, commencing at 48 Federal Register 20881, modified as provided in this section. To the extent that said provisions of the Criteria, as so modified, are applicable to contracts 

entered into under this section, those provisions are hereby 

ratifiedø.¿; 

(D) authorize and require Western to collect from new 

allottees a pro rata share of Hoover Dam repayable advances 

paid for by contractors prior to October 1, 2017, and remit such 

amounts to the contractors that paid such advances in proportion to the amounts paid by such contractors as specified in section 6.4 of the Implementation Agreement; 

(E) permit transactions with an independent system operator; 

and 

(F) contain the same material terms included in section 5.6 

of those long-term contracts for purchases from the Hoover 

Power Plant that were made in accordance with this Act and 

are in existence on the date of enactment of the Hoover Power 

Allocation Act of 2010. 

(b) Nothing in the Criteria shall be construed to prejudice any 

rights conferred by the Boulder Canyon Project Act, as amended 

and supplemented, on the holder of a contract described in subsection (a) of this section not in default thereunder on September 

30, ø2017¿ 2067. 

ø(c)(1) The Secretary of Energy shall not execute a contract described in subsection (a)(1)(A) of this section with any entity which 

is a party to the action entitled the ‘‘State of Nevada, et al. against 

the United States of America, et al.’’ in the United States District 

Court for the District of Nevada, case numbered CV LV ’82 441 

RDF, unless that entity agrees to file in that action a stipulation 

for voluntary dismissal with prejudice of its claims, or counterclaims, or crossclaims, as the case may be, and also agrees to file 

with the Secretary a document releasing the United States, its officers and agents, and all other parties to that action who join in 


sroberts on DSK3CLS3C1PROD with HEARING
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that stipulation from any claims arising out of the disposition 

under this section of capacity and energy from the Boulder Canyon 

project. The Attorney General shall join on behalf of the United 

States, its officers and agents, in any such voluntary dismissal and 

shall have the authority to approve on behalf of the United States 

the form of each release. 

ø(2) If after a reasonable period of time as determined by the 

Secretary, the Secretary is precluded from executing a contract 

with an entity by reason of paragraph (1) of this subsection, the 

Secretary shall offer the capacity and energy thus available to 

other entities in the same State eligible to enter into such contracts 

under section 5 of the Boulder Canyon Project Act.¿ 

(c) OFFER OF CONTRACT TO OTHER ENTITIES.—If any existing contractor fails to accept an offered contract, the Secretary of Energy 

shall offer the contingent capacity and firm energy thus available 

first to other entities in the same State listed in Schedule A and 

Schedule B, second to other entities listed in Schedule A and Schedule B, third to other entities in the same State which receive contingent capacity and firm energy under subsection (a)(2) of this section, 

and last to other entities which receive contingent capacity and firm 

energy under subsection (a)(2) of this section. 

ø(d) The uprating program authorized under section 101(a) of 

this Act shall be undertaken with funds advanced under contracts 

made with the Secretary of the Interior by non-Federal purchasers 

described in subsection (a)(1)(B) of this section. Funding provided 

by non-Federal purchasers shall be advanced to the Secretary of 

the Interior pursuant to the terms and conditions of such contracts.¿ 

(d) WATER AVAILABILITY.—Except with respect to energy purchased at the request of an allottee pursuant to subsection (a)(3), the 

obligation of the Secretary of Energy to deliver contingent capacity 

and firm energy pursuant to contracts entered into pursuant to this 

section shall be subject to availability of the water needed to 

produce such contingent capacity and firm energy. In the event that 

water is not available to produce the contingent capacity and firm 

energy set forth in Schedule A, Schedule B, and Schedule D, the 

Secretary of Energy shall adjust the contingent capacity and firm 

energy offered under those Schedules in the same proportion as 

those contractors’ allocations of Schedule A, Schedule B, and Schedule D contingent capacity and firm energy bears to the full rated 

contingent capacity and firm energy obligations. 

ø(e) Notwithstanding any other provisions of the law, funds advanced by non-Federal purchasers for use in the uprating program 

shall be deposited in the Colorado River Dam Fund and shall be 

available for the uprating program.¿ 

ø(f) Those amounts advanced by non-Federal purchasers shall be 

financially integrated as capital costs with other project costs for 

rate-setting purposes, and shall be returned to those purchasers 

advancing funds throughout the contract period through credits 

which include interest costs incurred by such purchasers for funds 

contributed to the Secretary of the Interior for the uprating program.¿ 

ø(g)¿ (e) The provisions of this section constitute an exercise by 

the Congress of the right reserved by it in section 5(b) of the Boulder Canyon Project Act, as amended and supplemented, to preVerDate Mar 15 2010 00:50 Oct 05, 2010 Jkt 089010 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\SR329.XXX SR329

sroberts on DSK3CLS3C1PROD with HEARING
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scribe terms and conditions for øthe renewal of¿ contracts for electrical energy generated at Hoover Dam. This section constitutes the 

exclusive method for disposing of capacity and energy from Hoover 

Dam for the period beginning øJune 1, 1987, and ending September 30, 2017¿ October 1, 2017, and ending September 30, 2067. 

ø(h)¿ (f)(1) Notwithstanding any other provision of law, any 

claim that the provisions of subsection (a) of this section violates 

any rights to capacity or energy from the Boulder Canyon project 

is barred unless the complaint is filed within one year after the 

date of enactment of øthis Act¿ the Hoover Power Allocation Act of 

2010 in the United States Claims Court which shall have exclusive 

jurisdiction over this action. Any claim that actions taken by any 

administrative agency of the United States violates any right under 

this title or the Boulder Canyon Project Act or the Boulder Canyon 

Project Adjustment Act is barred unless suit asserting such claim 

is filed in a Federal court of competent jurisdiction within one year 

after final refusal of such agency to correct the action complained 

of. 

(2) Any contract entered into pursuant to section 105 or section 

107 of this Act shall contain provisions by which any dispute or 

disagreement as to interpretation or performance of the provisions 

of this title or of applicable regulations or of the contract may be 

determined by arbitration or court proceedings. The Secretary of 

Energy or the Secretary of the Interior, as the case may be, if authorized to act for the United States in such arbitration or court 

proceedings and, except as provided in paragraph (1) of this subsection, jurisdiction is conferred upon any district court of the 

United States of proper venue to determine the dispute. 

ø(i)¿ (g) It is the purpose of øsubsections (c), (g), and (h) of this 

section¿ this Act to ensure that the rights of contractors for capacity and energy from the Boulder Canyon project for the period beginning øJune 1, 1987, and ending September 30, 2017¿ October 1, 

2017, and ending September 30, 2067, will vest with certainty and 

finality. 

* * * * * * * 

Æ 


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