HR 2432: Southwestern Power Administration Fund Establishment Act

Overview

Bill Number: HR 2432

Title: Southwestern Power Administration Fund Establishment Act
Status: Introduced in House
Introduced: March 27, 2025

Purpose and Intent

The Southwestern Power Administration Fund Establishment Act aims to create a dedicated fund to support the operations and infrastructure of the Southwestern Power Administration (SWPA), a federal agency that markets and transmits hydroelectric power from federal dams in Arkansas, Missouri, Oklahoma, and Texas. The bill's primary goal is to provide a stable, reliable funding source for SWPA's activities, which are currently dependent on annual appropriations.

Key Provisions

• Establishes the Southwestern Power Administration Fund, a revolving fund in the U.S. Treasury
• Requires SWPA to deposit all revenues from the sale of electric power and related services into the Fund
• Authorizes the Fund to be used for SWPA's operating expenses, including:
  • Maintenance and upgrades of transmission infrastructure
  • Investments in new generation and transmission assets
  • Administrative and personnel costs
• Allows the Fund to retain unobligated balances from year to year, rather than reverting to the general Treasury
• Grants SWPA the authority to set rates for power and transmission services to ensure the Fund's solvency

Affected Parties and Impacts

The Southwestern Power Administration Fund Establishment Act would primarily impact:

• SWPA, by providing a dedicated, self-sustaining funding source to support its operations and infrastructure
• Electricity consumers in the SWPA service area, as the agency's rates would be set to maintain the Fund's solvency
• Taxpayers, by reducing the need for annual appropriations to support SWPA and potentially lowering the federal budget deficit

Procedural and Timeline Considerations

The bill was introduced in the House of Representatives on March 27, 2025 and has been referred to the House Committee on Energy and Commerce for consideration. If passed by the House and Senate, and signed into law by the President, the Southwestern Power Administration Fund would be established and operational starting in the next fiscal year.