The American Public Power Association (APPA) and the National Rural Electric Cooperative Association (NRECA) on March 19 sent a letter to Energy Secretary Chris Wright to emphasize the importance of federal preference power and its central role in the mission of the Power Marketing Administrations (PMAs).
The letter emphasizes that Congress has repeatedly authorized preference power under federal law and all PMAs must give preference to public power utilities and cooperatives whilst selling their power at cost-based rates.
It makes clear that all appropriations for the federal power program are repaid to the U.S. Treasury by federal power customers, and no PMA costs are paid by taxpayers.
The letter also highlights challenges currently faced by the Bonneville Power Administration (BPA) with regards to unprecedented electricity demand and leadership change. It cautions against any attempts to change BPA’s existing preference processes, which would create uncertainty and increase costs.
The groups also said they strongly oppose any efforts to privatize the PMAs in whole or in part and urge Secretary Wright to ensure that no initiative authorizes the allocation, sale, or expansion of rights to preference power for non-traditional customers.
