Recently, the Western’s Desert Southwest Region updated its 10-year Capital Program. The Fiscal Year 2012 Capital Program provides both a capital investment plan, as well as a funding plan, that will ensure reliable power delivery to Western’s customers.
The updated program booklet clearly describes DSW’s strategy to construct and repair Western’s transmission lines; it entails DSW’s current goals and challenges to maintain reliability and outlines its major accomplishments for FY 2011; it also provides an opportunity for customer collaboration.
Program aligns Western’s, customers’ goals
The Capital Program is an ongoing project revised annually in response to approved funding allocations for the budget year, changes in project priority, unforeseen problems with the transmission system, mandates or regulatory requirements and new contractual requirements.
Fluctuations in funding make it difficult to plan which projects to carry out and at what pace to complete them. Appropriated funds don’t carry over from year to year, which means any excess funding that is still available at the end of the fiscal year cannot be used in subsequent years.
In FY 2010, Western and its customers decided that the best way to address the ongoing funding struggle was to use prepayment funding for selected construction projects, and it has significantly helped DSW’s position. Customers prepay for transmission services, providing a source of funds to cover some of the appropriations shortfalls. Projects that are proposed for pre-payment are first submitted for funding through the typical appropriated funding process.
The use of pre-payment funding is beneficial to both Western and its customers and has provided a significant, and consistent, source of construction dollars since its inception.
Projects see 2011 success, 2012 schedules
Despite appropriated funding issues in FY 2011, DSW completed several construction and RRAD projects. “DSW customers are very satisfied with our progress, particularly in the last two years since we’ve been working prepayment projects. DSW customers are able to see their money at work and that helps build our credibility as an organization and develops a relationship of trust and cooperation,” said Project Manager Chris Lyles.
With FY 2012 already in progress, all projects scheduled for execution this year are dependent on the receipt of adequate appropriated funding in a timely manner.
The 10-year Capital Program is the means for identifying, prioritizing, scheduling and funding projects that directly affect Western and its customers. It is essential to meeting Western’s mission of providing reliable power to its customers.
Learn more about DSW’s 10-year Capital Plan.