The odd-Duck, Salt River Project (SRP)
I call SRP the odd duck in the fondest of meaning, SRP breaks almost all of what we have discussed over the previous posts. It is a Federal Power District; it is not subject to state regulation but cooperates closely with the state and the regulatory staff. It has transmission, distribution and generation. It operates thermal plants; it manages water and electricity.
SRP was (and in many ways still is) the prototype that provided the example to create TVA, Rural Utility Service, the Cooperative System, the Federal Power Marketing (FPM) system and so much more.
As the first mover under the 1902 water reclamation act, the  Theodore Roosevelt Dan was complete 20 years before TVA and BPA were created. Because there was no infrastructure in SRP’s territory, SRP created the prototype of a Distribution Coop almost 30 years before the government created RUS and the cooperative system. SRP created the first real federal transmission system more than 20 years before the first transmission lines were owned by other FPM agencies. In short SRP pioneered the path that led to almost all of the Federal entities that were created in the 1920s through the 1940s.
Today SRP is the leading entity putting water back into the local aquifer, extending the life of the aquifer and stabilizing the amount of water available year to year. SRP has acted as the catalyst for getting water rights moved from agriculture to urban use, without massive court fights or new federal laws.
Today SRP is funded through the sale of power (retail and wholesale), and the sale of water. SRP operates with cash accounting, not Return on Invested Capital. The board sets both water and electricity rates. They pay state and local taxes as any other business would. SRP is self-funding, not subsidized by any government. SRP has a reasonable investment portfolio, set aside for major projects in the future.
I have personal experience with SRP and find the people there some of my favorite to work with, they are both friendly and challenge me to think and work hard. Some of my favorite brainstorming sessions have been at SRP.
SRP may be the odd duck, but this is the duck you want to learn from.
Part #2 - Distribution Cooperatives
Part #3 -Â Generation and Transmission Cooperatives (G&T)
Part#4 -Â Federal power districts
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