Boozman Calls for Ozark Powerhouse Funds

Boozman Calls for Ozark Powerhouse Funds

U.S. Representative John Boozman (R-AR) today testified before the House Budget Committee on the importance of funding the Ozark-Jeta Taylor Powerhouse.

President Bush made the powerhouse project a part of his recent budget proposal delivered to Congress. Rep. Boozman testified on the need for Congress to authorize the allocated $17.3 million in the President's budget.

Here is the testimony of Rep. Boozman, as prepared:

"Chairman Spratt, Ranking Member Ryan and members of the House Budget Committee, thank you for allowing me the opportunity today to express to you the importance of authorizing funds for the Ozark-Jeta Taylor Powerhouse in the 3rd District of Arkansas.

This project is of fundamental importance to the citizens of my district, the state of Arkansas and indeed the surrounding states of Oklahoma, Missouri, Texas, Kansas and Louisiana. In all, over 6 million people will directly benefit from the clean, renewable and efficient hydropower generated at Ozark Powerhouse once it is fully rehabilitated. Recognizing the importance of this project, the President's Administration allocated $17.3 million to this project in its current budget proposal, under its priority projects for the Corps of Engineers. I sincerely hope that this Committee will give the Ozark Powerhouse project the same consideration and authorize at least the President's recommended amount in the House Budget Proposal.

There are five turbine-generator units at Ozark and three at its counterpart facility, the Webbers Falls Powerhouse in Oklahoma. From 1999 through 2004, 2.4 generating units, on average, were unavailable at the Ozark Powerhouse and Webbers Falls, due to major failures resulting from significant design flaws. The damage sustained by one of the units at Ozark is so extensive that it will remain unavailable for service until it is rebuilt, and another unit is currently in imminent danger of failure.

The benefits of completing this project continue to increase with the rising cost of energy and the increasing cost of repairing the units which remain repairable. Every year these units remain out of service, the government loses nearly $1 million in energy sales revenues that otherwise would be returned to the U.S. Treasury. Furthermore, it costs Southwestern Power Administration's wholesale power customers an estimated $9 million to replace this lost energy with more expensive, less environmentally-friendly sources. If we fail to act, we can expect higher life-cycle maintenance costs and a higher failure rate than has been experienced in the past.

In the past, Congress has shown a major commitment to this project. In FY2003, Congress appropriated $2.5 million to begin the major rehabilitation at Ozark. In FY2005, the Administration requested, and Congress appropriated, another $5 million to begin the turbine acquisition contract for Ozark. Additionally, the power customers have shown a major commitment by providing more than $24 million to continue these rehabilitation projects. However, this non-traditional funding method is merely a stop-gap measure, and diverts money from other maintenance and replacement projects at Corps of Engineer hydropower plants that are funded by customers. Finally, it should be noted that every dollar spent on rehabilitation of the Ozark Powerhouse will be returned to the Treasury with interest, meaning that the long-term budgetary impact of completing the rehabilitation is zero.

Appropriating the Administration's recommended $17.3 million will allow the Ozark Powerhouse to complete rehabilitation, allowing the facility to run more efficiently and reliably. While the Corps of Engineers expects its hydroplants to be available 96% of the time, during the past twenty years, Ozark Powerhouse has only been available 90% of the time, at best - dropping as low as 31% availability in 2001.

The Ozark-Jeta Taylor Powerhouse Rehabilitation project is a highly beneficial, revenue producing, self-sustaining, environmentally friendly, job-creating project that would reduce our dependence on foreign energy. Failure to complete this project in a timely manner will result in the expansion of less environmentally-friendly alternatives. Furthermore, this project will provide a positive return on the taxpayers' dollars. Funding this project would provide tremendous benefits for our nation's environment and economy. Our local communities will be thankful when the Corps of Engineers completes its work on this project. I again urge you to include the Ozark Powerhouse Rehabilitation in the House of Representative's FY2008 Budget. I thank the Chairman, the Ranking Member and all the members of the Committee for their time and thoughtful consideration."

http://www.boozman.house.gov/News/DocumentSingle.aspx?DocumentID=58226