Financing and Marketing Feasibility Tests for Proposed Federal Hydroelectric Power Projects

by Edward D. Lindsey, Jr., Southwestern Power Administration, United States,
Fred J. Munsell, Southwestern Power Administration, United States,



Document Type: Proceeding Paper

Part of: Waterpower '89

Abstract:

The Southwestern Power Administration (SWPA), an agency of the Department of Energy, is responsible for marketing the power and energy produced at Federal hydroelectric power projects developed by the U.S. Army Corps of Engineers. SWPA has developed a computer model to test the financial feasibility of each proposed project. The model compares the life-cycle costs of the hydroelectric power project to the life-cycle costs of alternative coal- and gas-fired power facilities. If the life-cycle costs of the proposed hydroelectric power project compare favorably with those of the least costly thermal alternative, the hydroelectric power project is determined to be financially feasible. Proposed projects which are found to be financially feasible must also pass a marketability test before SWPA will issue a statement supporting Federal development.

Subject Headings: Hydro power | Project management | Construction costs | Computer models | Federal government | Feasibility studies | Marketing | United States

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