Press Releases

Today, Congressional Western Caucus Chairman Paul A. Gosar D.D.S. (AZ-04), Chief Rules Officer Dan Newhouse (WA-04), Western Caucus member Rep. Kurt Schrader (OR-05) and the American Public Power Association (APPA) released the following statements praising the House Budget Committee’s decision not to auction off Power Marketing Administration (PMA) transmission assets in the fiscal year 2018 budget resolution released and passed by the full Budget Committee:

Chairman Gosar said, “Power Marketing Administrations generate billions of dollars for the U.S. Treasury. Auctioning off their transmission assets would harm rural and local communities throughout the country and would actually add to our already staggering federal debt in the long-term,” said Chairman Gosar. “Even more importantly, tens of millions of Americans rely on the affordable and sustainable federal power marketed by the Power Marketing Administrations. I applaud Chairman Black for favorably responding to our request and rejecting this budget proposal that would have hit the pocket books of hard-working Americans. I also want to thank Reps. Newhouse and Schrader for their leadership as well as the countless co-ops, irrigation districts and power users throughout the country who joined us in this successful effort.”

“I applaud my House colleagues’ action to prevent divesting transmission assets for federal Power Marketing Agencies, including for the Bonneville Power Administration,” remarked Rep. Newhouse. “Bonneville Power Administration provides affordable electricity service that is essential for our rural communities, and divesting would needlessly jeopardize regional energy markets.”

Congressman Schrader said, “I’m pleased by the Committee’s decision to not include the administration’s misguided proposal which would have stripped the Bonneville Power Administration (BPA) of its assets, harming Oregon ratepayers. Pacific Northwest consumers rely on BPA’s clean, affordable and sustainable power it provides to the region. This proposal would have caused major problems with energy production and delivery, hiking consumer rates and reducing service.”

The APPA stated, “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. The American Public Power Association appreciates that the House Budget Committee has recognized that the Administration’s proposal to sell the PMA transmission assets would threaten the ability of the PMAs to provide reliable, cost-based power to approximately 1,200 public power systems and rural electric cooperatives in 33 states and the millions of customers they serve.”

Background:
 

The Administration proposed to sell transmission assets of the Power Marketing Administrations (PMAs) within the Department of Energy (DOE) in the fiscal year (FY) 2018 budget request.

In response, members of the Congressional Western Caucus led by Reps. Dan Newhouse, Kurt Schrader and Paul Gosar sent a letter signed by 50 members to the House Budget Committee requesting that the Committee reject this misguided proposal to auction off these transmission assets.

The letter enjoyed massive bipartisan support, including the signatures of 27 Democrats and 23 Republicans, in addition to significant support from local co-ops, irrigation groups and power users that would be negatively affected. To read the final signed letter click HERE.

The decision by House Budget Committee to respond favorably to this request and advance a budget resolution that does not privatize these PMA assets demonstrates that the Committee is interested in solving real fiscal problems without causing significant damage to rural and local communities as well as tens of millions of Americans who rely on affordable and sustainable power.

Members of the Western Caucus are proud to have made a real impact in this process for the benefit of the dozens of states in question and their local governments, industries and citizens.

There are four federal PMAs that help provide affordable electricity service throughout the country by marketing and delivering power. Specifically, the budget proposal sought to divest the transmission assets of three of those PMA’s: Bonneville Power Administration (BPA), Southwestern Power Administration (SWPA), and Western Area Power Administration (WAPA).

The aforementioned PMAs are essential not just for states and industry, but for rural and local communities as well as tens of millions of Americans who rely on affordable and sustainable power. Combined, the four PMAs furnish electric power service through more than 1,200 public power utilities and 600 rural electric cooperatives in 34 states.

If this portion of the budget proposal were enacted, Congress would be doing a major disservice to millions of rural residents – nearly one-third of whom already live at-or-below the federal poverty line – by disrupting infrastructure cohesion within sensitive energy markets and causing prices in those regions to rise dramatically.  

More information on the FY18 budget resolution can be found HERE.

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Original letter signers (50): Andy Biggs, Earl Blumenauer, Suzanne Bonamici, Mike Coffman, Jim Costa, Kevin Cramer, Rick Crawford, Peter DeFazio, Diana DeGette, Suzan DelBene, Tom Emmer, Anna G. Eshoo, Jeff Fortenberry, Trent Franks, John Garamendi, Paul Gosar, Raul Grijalva, Denny Heck, Jaime Herrera Beutler, Jared Huffman, Derek Kilmer, Steve King, Doug LaMalfa, Doug Lamborn, David Loebsack, Mia Love, Frank Lucas, Doris Matsui, Jerry McNerney, Markwayne Mullin, Grace F. Napolitano, Dan Newhouse, Kristi Noem, Rick Nolan, Tom O’Halleran, Ed Perlmutter, Collin Peterson, Jared Polis, Jacky Rosen, Kurt Schrader, Kyrsten Sinema, Adam Smith, Adrian Smith, Scott Tipton, Dina Titus, David G. Valadao, Juan Vargas, Greg Walden, Tim Walz, David Young.

Original letter endorsed by: American Public Power Association, National Rural Electric Cooperative Association, Arizona Municipal Power Users’ Association, Buckeye Water Conservation & Drainage District, Colorado River Energy Distributors Association, Grand Canyon State Electric Cooperative Association, Irrigation & Electrical Districts' Association of Arizona.

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