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SOUTHWESTERN POWER ADMINISTRATION 



The proposed FY 1995 purchase power budget request for Southwestern is $503,000. 

 However, Southwestern will meet all of its direct purchase power needs for FY 1995 

 through a combination of banked energy arrangements and its continuing fund 

 authority. The FY 1995 request of $503,000 will be supplemented by the use of 

 deferred funds from previous years and reimbursable authority to meet contract 

 commitments for transmission of Federal power to preference customers. 



In 1988 Southwestern purchased $359,298 worth of energy to support the capacity of 

 Southwestern 's Federal Power System. The purchased energy, ultimately paid for by 

 Southwestern 's ratepayers, was necessary to replace hydropower resources depleted at 

 the direction of the Corps of Engineers to sustain barge traffic on the McCIellan-Kerr 

 Navigation System during a declared navigation emergency. 



Water diversions for fisheries have caused the loss of about 180,153,000 kilowatt-hours 

 of energy during the period, October 1990 through 1993. That loss of energy 

 represents about $904,000 of revenue that would have been used to repay 

 Southwestem's hydropower investment. In addition, it represents a loss of about 

 $3,770,000 of benefits to Southwestem's ratepayers because of replacement energy 

 which they purchased. The loss of hydropower energy also reflects an increase in 

 fossil fuel emission from the additional generation. 



