Impacts to Hydropower 

Customers and the Basin Fund 

from Conducting Experiments 

Craig Ellsworth 

Fish Biologist 

TWG – June 2023 
 

Power Rate Power Revenue 

Basin Fund 

BOR & WAPA O&M 

& Replacements Constructive 

Return 

Nonreimbursable 

activities (GCPA) 

Market sales 

Contracts 

CRSP Loan 

Power 

Purchases 

Cash 

Return 

The CRSP 

Basin Fund 

model 

“... without further appropriations ...” 2 
The Colorado 

River Storage 

Project (CRSP) 

Initial Units 

• Glen Canyon Dam 

• Flaming Gorge Dam 

• Aspinall Units 

• Blue Mesa 

• Morrow Point 

• Crystal 

• Navajo Dam 

Participating Projects 

• Dolores 

• Seedskadee 

Water Projects 

• Central Utah Project 

• Many others 3 https://www.usbr.gov/uc/rm/crsp/index.html 
 

 

 

1956 CRSP 

Act 

• Provided authorization for the 

construction of initial units 

• Allowed Upper Basin to develop 

their water allocation 

• Includes power generation and 

transmission 

• Power revenues pays for 

• Repayment 

• O&M 

• Replacements 

• Established the Basin Fund 

• Operate “... without further 

appropriations ...” 

4 https://www.usbr.gov/lc/region/g1000/pdfiles/crspuc.pdf 
 

• GCDAMP & UCRIPs

• Lower Basin

experiments

• Salinity control

• Water quality and 

consumptive use 

studies 

The Basin 

Fund - 1956 

• Power Revenue • BOR & WAPA O&M 

• Replacements 

• Firming for contracts 

• Repayment 

• Power Contracts • WAPA is a wholesale provider 

• Project use 

• Preference customers • Small, rural utilities 

• 54 Tribes 

• Non-reimbursable activities

Power Rate Power Revenue 

Basin Fund 

BOR & WAPA O&M 

& Replacements 

Market sales 

Contracts 

CRSP Loan 

Power 

Purchases 

Cash 

Return 

“... without further appropriations ...” 5 
 

 

 

 

 

 

 

 

1992 GCPA 

Section 1804e: “Costs allocated to 

Section 1802 purposes shall be 

nonreimbursable“ 

• Nonreimbursable 

• Grand Canyon is national resource 

• Direct costs of GCPA are borne by 

the Federal government 

• Shifts burden of GCPA from project 

beneficiaries to the Federal 

government 

• WAPA then books these costs as 

a constructive return against the 

debt taken to build the CRSP 

6 https://www.usbr.gov/uc/legal/gcpa1992.pdf 
 • GCDAMP & UCRIPs

• Glen Canyon Dam

experiments

• Water quality and 

consumptive use studies

The Basin 

Fund - 1956 

• Power Revenue 

• BOR & WAPA O&M 

• Replacements 

• Repayment 

• Firming for contracts 

• Power Contracts 

• WAPA is a wholesale provider 

• Project use 

• Preference customers 

• Small, rural utilities 

• 54 Tribes 

• Nonreimbursable activities

Power Rate Power Revenue 

Basin Fund 

BOR & WAPA O&M 

& Replacements 

Market sales 

Contracts 

CRSP Loan 

Power 

Purchases 

Cash 

Return 

“... without further appropriations ...” 7 
 

Power Rate 

Contracts 

Market sales 

Power Revenue 

Power 

Purchases 

CRSP Loan 

Basin Fund 

Nonreimbursable 

activities (GCPA) 

Cash 

Return 

BOR & WAPA O&M 

& Replacements Constructive 

Return 

“... without further appropriations ...” 8 

The Basin 

Fund w-GCPA

• Power Revenue 

• BOR & WAPA O&M 

• Replacements 

• Repayment 

• Firming for contracts 

• Power Contracts 

• WAPA is a wholesale provider 

• Project use 

• Preference customers 

• Small, rural utilities 

• 54 Tribes 

• Nonreimbursable activities 

• GCDAMP & UCRIPs 

• Glen Canyon Dam 

experiments 

• Water quality and 

consumptive use studies 
 

Power Rate 

Contracts 

Market sales 

Power Revenue 

Power 

Purchases 

CRSP Loan 

Basin Fund 

Nonreimbursable 

activities (GCPA) 

Cash 

Return 

BOR & WAPA O&M 

& Replacements Constructive 

Return 

“... without further appropriations ...” 9 

Basin Fund 

principles 

• Cost-based project 

• Revenues = Expenses 

• ~$200M/yr 

• Basin Fund pays for things 

• Buffers against lean years and 

unexpected expenses 

• Has a finite balance 

• Cannot be overdrawn (Anti-Deficiency Act) 

• There is a finite amount of 

repayment/constructive returns 

• No additional appropriations for 

O&M & replacements 

• Glen Canyon experiments are 

nonreimbursable and booked as 

a constructive return 
 

 

 

 

 

Power Rate

r 

Contracts 

Market sales 

Power Revenue 

Power 

Purchases 

CRSP Loan 

Basin Fund 

Nonreimbursable 

activities (GCPA) 

Cash 

Return 

BOR & WAPA O&M 

& Replacements Constructive 

Return 

“... without further appropriations ...” 10 

Status of the 

Basin Fund 

• Reduced funding for 

nonreimbursable 

activities 

• Inability to firm / 

increased risk of CRC 

• Deferred some 

replacements 

• Ahead on repayment 

• Reduced O&M on wate

and power 
 

 

 

 

 

 

Another day: Experiments may also have 

non-Basin Fund related impacts 

• Changes in energy prices linked 

to experiments 

• 2000 LSSF 

• HFEs 

• SMB Bypass EA 

• Difficulty in finding and delivering 

on-peak replacement energy and 

selling off-peak power 

• Reduced power resources = 

Increased competition = 

Higher prices for everyone 

• Larger experiments could 

threaten grid stability Glen Canyon is an integral component of the Western grid and hydropower plays a 

critical role in power production, grid stability, and emergency response. 

Hydropower works in concert with wind and solar and is an important component of a 

renewable, non-carbon-based power portfolio. 11 
 

Possible Solutions 

Establish an Experimental Fund and 

Budget 

https://www.usbr.gov/uc/progact/amp/twg/2023-04-13-twg-meeting/20230413-TWGMeeting-FinalAgenda-508-UCRO.pdf 

• Nonreimbursable appropriation to 

Reclamation to offset cost of experiments 

• Cost share from power, water, recreation, 

conservation, resource management 

agencies, and research grants 

• In order to comply with GCPA, 

hydropower costs would need to be 

transferred back into the Basin Fund 

12 
 

 

 

 

 

 

 

 

 

 

Summary 

Why can’t we afford a $40-$80M/yr nonreimbursable expense 

to the Basin Fund? • The nonreimbursable program was an elegant solution. • Absorbing the costs of experimental releases is not what 

the Basin Fund is for. 

• The purpose of the Basin Fund is to operate and maintain 

the CRSP. 

• The 1992 GCPA says project beneficiaries are not to cover 

the costs of experimental releases. 

• Because of the repayment obligation, the nonreimbursable 

program has worked for smaller experiments, but it does 

not work for larger experiments. 

• Keeping things in perspective: • BOR UC budget request to operate the entire CRSP = $80M/yr • Aging infrastructure: $40M in replacements at Glen Canyon • Unanticipated repairs: $15M storm damage on 3 miles of the Pinnacle 

Peak – Rogers line in 2022 (Glen Canyon to Phoenix/Mesa) 

13 
Craig Ellsworth 

ellsworth@wapa.gov 

385-228-3994 

www.wapa.gov 

14