Selling off the federally owned Power Marketing Administrations has made it into the Trump administration’s budget request for the second year in a row. The idea is not a new one. It was first floated in during the Reagan era – specifically Reagan’s Fiscal Year 1987 Presidential Budget Request.
PMAs are in essence federally owned electrical power utilities which charge its costumers cost-based rates. The president’s budget, in addition to selling its stake in the PMAs, would allow the utilities to charge market based rates, bringing them in line with their for-profit competitors. The government’s PMA assets include the Bonneville Power Administration, Southeastern Power Administration, Southwestern Power Administration, and the Western Area Power Administration.
If the federal government is to follow through on the President’s request, it must ensure these federal assets are sold for fair market value, at a competitive auction, that will provide taxpayers with a fair return.
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