Lawmakers oppose privatization of Power Marketing Administrations

Published on May 13, 2019 by Douglas Clark


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A group of lawmakers recently opposed transmission asset divestment and changes in the pricing structure of four Power Marketing Administrations (PMAs).

Reps. Dan Newhouse (R-WA), Paul Gosar (R-AZ) and Kurt Schrader (D-OR) are among legislators who have forwarded correspondence to the House Committee on the Budget opposing the effort, which includes the Bonneville Power Administration (BPA).

“The people of Central Washington rely on the stable and affordable power supplied by the Bonneville Power Administration,” Newhouse said. “While I understand the need to streamline federal projects and reduce our government spending, the privatization of PMAs would create uncertainty and lead to higher electricity bills for millions of families across the United States, especially in rural areas.”

Newhouse said hydropower projects utilized by PMAs, including the federal dams in the Pacific Northwest, operate at no cost to the taxpayer and lawmakers should view them as examples of successful federal investments.

“The proposed sale of PMA and Tennessee Valley Authority (TVA) assets for the upcoming fiscal year is a short-sighted and ill-considered proposal that would skyrocket energy costs for tens of millions of Americans,” Gosar said. “While such action may provide a short-term boost to Treasury revenues, these actions would ultimately prove unwise and costly as any prospective private purchaser would have to raise rates dramatically in order to make a profit. At-cost power, on the other hand, is a win for consumers, the federal government and taxpayers as PMAs recoup all federal investment plus interest.”