American Public Power Association Statement on President Trump’s Proposal to Divest the Transmission Assets of the Power Marketing Administrations
May 23, 2017
Washington D.C., May 23, 2017 — The American Public Power Association is disappointed to see that FY 18 budget request released by President Trump proposes to divest the transmission assets of three Power Marketing Administrations (PMAs), which include the Southwestern Power Administration (SWPA), the Western Area Power Administration (WAPA), and the Bonneville Power Administration (BPA).
The PMAs provide millions of Americans served by not-for-profit public power and rural cooperative electric utilities with cost-based hydroelectric power produced at federal dams. PMA rates are set to cover all generation and transmission costs, as well as repayment, with interest, of the federal investment in these hydropower projects. None of the costs are borne by taxpayers.
Selling the PMA transmission assets would threaten the ability of the PMAs to provide reliable, cost-based power to the approximately 1,200 public power systems and rural electric cooperatives in 33 states and the millions of customers they serve. The Association urges Congress to reject this misguided proposal.