The price tag for protecting endangered fish in the Pacific Northwest remains hefty, a regional planning group says.

Protecting fish and wildlife added $644.1 million to Northwest electricity costs in 2012, a study says. (Photo By: AP Photo/Bonneville Power Administration)

Bonneville Power Administration, which markets wholesale power to electric cooperatives and consumer-owned utilities, spent $644.1 million in 2012 on fish and wildlife enhancement.

The spending accounts for one-third of BPA’s power rates, which currently run about $30 per megawatt-hour, according to a draft report released May 9 by the Northwest Power and Conservation Council.

The council, created by Congress to oversee the effects of hydroelectric operations on fish and wildlife, does not take a position on whether the costs are justified.

It did conclude, though, that BPA has spent $13.1 billion on fish and wildlife programs since 1978. That includes $4 billion in power purchased from outside providers at times when BPA had to reduce hydro generation.

“This amount does not include annual investments for capital projects in the direct program, such as construction of fish hatcheries,” the report said.

The council will accept public comments on the draft, submitted to the governors of Idaho, Montana, Oregon and Washington, through June 7.

Most of BPA’s expenditures stem from complying with laws and court orders aimed at improving the stock of endangered and threatened species of steelhead and salmon in the Columbia River basin.

In 2012, for example, BPA eschewed $152.2 million in hydropower sales revenue when it scaled back dam operations to create more favorable conditions for fish migration.

It also rang up $131.5 million in fixed costs on projects such as hatcheries, land purchases and fish passage facilities that bypass dam turbines.

The council’s report excluded an additional $172 million in capital investments from the $644.1 million total for 2012 because some of those expenses are funded by congressional appropriations and repaid by BPA.

“Including them in the same total as fixed costs would double-count some of the capital investment,” the report said.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post Fish Boost NW Costs by $644 Million appeared first on Electric Co-op Today.

Agriculture Secretary Tom Vilsack said the Obama administration’s climate change concerns are behind a budget proposal that would sharply restrict the way the Rural Utilities Service loans money to electric cooperatives.

Agriculture Secretary Tom Vilsack, seen at the NRECA Legislative Conference, told a Senate panel changes are planned for rural electric loans. (Photo By: Luis Gomez Photos)

If enacted, the change could curtail RUS lending for non-renewable distribution or transmission, though Vilsack told the Senate Agriculture Appropriations Subcommittee he hopes banks and not-for-profits will fill the void.

“To the extent we have a waiting list or to the extent that we have a need that we’re not able to meet, we’re go to try to shop and facilitate that need being met with a private sector or a nonprofit sector partner,” he said during a May 9 hearing on the fiscal 2014 budget.

The administration has proposed $4 billion for the Electric Loan Program that co-ops use to build and maintain their infrastructure. Of that, $3 billion would be earmarked for renewable energy projects, with $1 billion set aside for environmental upgrades.

As written, the budget language would leave no money for other distribution or transmission projects. Sen. Jeff Merkley, D-Ore., told Vilsack that he is concerned about that retrenchment.

“I want to make sure on behalf of the electric co-ops that there’s still the ability to invest in the transmission lines, as well,” Merkley said.

Electric cooperatives have lobbied the agriculture appropriations subcommittees in the House and the Senate against adopting the administration’s RUS policy language in their spending bills.

The subject was a major topic at last month’s Legislative Conference. Already, 134 House members and 27 senators have signed a letter to the two subcommittees objecting to the administration’s approach. The letter asks lawmakers not to place new restrictions on RUS financing.

Vilsack said the Obama budget proposal is part of a strategy to reduce greenhouse gas emissions. “One way to do that is by making sure we invest in renewable energy resources,” he said. “We honestly believe that there’s a good balance here and we’ll try to strike that balance.”

Asked by Merkley what will happen if loan funds for electric co-op transmission initiatives dry up, Vilsack said he has talked to investment bankers who might bridge the gap.

“It’s challenging us to think differently and to think creatively about partnerships and others who might be interested and able to invest in these projects that we’ve never thought of before,” he said.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post Vilsack: RUS Could Turn to Banks appeared first on Electric Co-op Today.

Co-op leaders participating in the 2013 NRECA Legislative Conference were urged to educate congressional staff on the importance of Power Marketing Administrations in keeping electric rates low for co-op consumer members.

Doug Hardy, general manager of Central Montana Electric Power Cooperative, addresses PMA forum at the 2013 Legislative Conference, as Ashley Slater, NRECA senior principal, legislative affairs, looks on. (Photo By: Luis Gomez)

With 89 freshmen members in the House, it is more important than ever to educate congressional offices on PMA issues and their partnership with co-ops, Ashley Slater, NRECA senior principal, legislative affairs, told an April 30 forum on PMAs.

“It is so important to spend time with staff who routinely brief members,” Slater said. Slater recalled the significance of a visit from outside experts during her days as a young staffer for Washington Rep. Jennifer Dunn. This firsthand information provides the staffer “the confidence to brief their member,” she said.

These visits may prove particularly significant now that the White House’s recent budget proposal calls for a “strategic review” of the Tennessee Valley Authority. The budget document said the administration will consider the possible divestiture of TVA “in part or as a whole,” citing the authority’s capital requirements and debt constraints.

Panelist Doug Hardy, general manager of Central Montana Electric Power Co-op, told the gathering to “be prepared to stand up with as much energy as we did the last time.”

Such efforts to communicate with Capitol Hill have repeatedly served NRECA members well in defending PMAs’ statutory mission. Most recently, in 2012 then-Energy Secretary Steven Chu put out a memo to restructure the PMAs in a way that threatened to raise rates for electric co-ops.

Member co-ops pushed back against Chu’s top-down effort to require that PMAs support policy goals for demand response, electric vehicles and renewable energy integration rather than support hydropower at the lowest-possible rate consistent with PMAs’ statutory mandate.

As a result, 166 members of the House of Representatives and the Senate from both parties galvanized against Chu’s memo, and DOE narrowed its scope to the Western Area Power Administration and formed an outreach team to collect input from co-ops and public power.

The DOE-WAPA Joint Outreach Team on March 1 sent final recommendations to the energy secretary that WAPA, rather than the department, should further implement any operational changes in partnership with its customers.

Click here to see a gallery of photos from the 2013 Legislative Conference.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post Educate Hill Staff on PMAs appeared first on Electric Co-op Today.

Members of electric cooperatives need to be encouraged to harness the political power of their numbers to help achieve mutual goals in their communities.

Tim Smith of North Central EC, (left) Curtis Wynn of Roanoke EC and Duane Frankart of East Central Oklahoma EC agree that the key to growing ACRE membership is asking for member involvement. (Photo By: Luis Gomez Photos)

“We need to be involved before the fact and not after the fact,” said Duane Frankart, board president of North Central Electric Cooperative, headquartered in Attica, Ohio.

“We’re elected by the members, and we understand the importance of participation in the democratic process,” said Frankart.”We believe in the program.”

Frankart was one of three presenters at “Co-op Owners for Political Action: Maximizing Your Political Impact,” a forum held April 30 during NRECA’s 2013 Legislative Conference. All the participants spent time focusing on strengthening the Action Committee for Rural Electrification, or ACRE®, program among their membership.

They stressed the importance of including political participation in every co-op’s program.

“We asked, ‘Would you consider joining this program?’” said Tim Smith, CEO and general manager of East Oklahoma Central Electric Cooperative. The Okmulgee-based co-op launched a concerted effort to build its ACRE membership following last year’s legislative conference.

“Thirty members signed up at our annual meeting,” said Smith. “If 30 members were to sign up from more than 800 co-ops, that would represent quite a bit of political clout.”

The presenters also stressed the importance of keeping ACRE participation affordable. In some cases, that’s accomplished by offering a voluntary check-off to consumer-members who have agreed to participate, so that contributions are spread over incremental periods.

“Our average donation is $25 per member,” said Smith, who is also NRECA’s Oklahoma director. “That amounts to $2.08 per month.”

Panelists also said building awareness of the issues facing electric cooperatives is important to keeping consumer-members engaged and committed to the goals of a co-op’s political action program.

“We make the tie between rising costs and the political environment,” said Curtis Wynn, president and CEO of Ahoskie, N.C.-based Roanoke Electric Cooperative, and an NRECA national director. “We need representatives that are representing our interests.”

Besides promoting the program in newsletters and statewide magazines, the presenters also stressed the benefits of including important co-op issues in talking points during community presentations.

They also said calls to action, including emails to elected officials or regulators, are available from NRECA and can be tailored to the needs of individual co-ops.

“Whether your [ACRE participation] goal is 1 percent or 5 percent, it is doable,” said Wynn. “We have to be willing to ask members to participate.”

Click here to see a gallery of photos from the 2013 Legislative Conference.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post Co-ops Urged to Political Activism appeared first on Electric Co-op Today.

Member co-ops are getting a chance to have their say on Capitol Hill this week at the annual Legislative Conference, where NRECA provided a run-down of key issues as the 113th Congress gets under way. What follows is a snapshot of the major issues:

RURAL UTILITIES SERVICE

NRECA urges members to ask their senators to sign a letter in support of a $4 billion loan level for the RUS Electric Loan Program and opposing strict new limits on RUS loans. The program provides co-ops loans to build infrastructure to generate and deliver electricity.

Electric cooperative leaders from across the country gathered in Washington, D.C. for NRECA’s 2013 Legislative Conference. (Photo By: iStockphoto)

Co-ops are also encouraged to thank House members for their help. So far, 134 House members—71 Democrats and 63 Republicans—signed the letter in favor of the RUS program. In addition, more than a dozen House members drafted their own letters to garner their colleagues’ support for the RUS program.

COAL ASH

A bill to tackle how best to regulate coal ash is expected to be introduced in the House and Senate with provisions favored by NRECA members. These include language to treat coal ash as non-hazardous material. This will allow coal ash to continue to be recycled and used in concrete, drywall and other products.

NRECA asks co-ops to urge their delegations to support the Coal Ash Recycling and Oversight Act of 2013.

WATER HEATERS

New efficiency standards by the Department of Energy are set to sideline large electric water heaters co-ops use as storage to manage peak load and save consumers money. In response to NRECA’s call for a waiver, the department proposed a short-term option for co-ops.

Co-ops should request their congressional delegations to have DOE provide a more workable solution to sustain these water heaters as part of their demand response programs for consumer savings.

Senator Saxby Chambliss and Rep. John Barrow, both from Georgia, are circulating “Dear Colleague” letters to encourage DOE to agree to a more workable waiver timeframe for its electric water heater efficiency standard.

POLE ATTACHMENTS

NRECA is asking that electric co-ops call on their Senators and House members to maintain their federal pole attachment exemption.

Congress has recognized the local direction of co-ops and exempted them from the Federal Communications Commission pole attachment regulations, but the cable industry is pushing lawmakers to reconsider in a move that would raise rates.

Click here to see a gallery of photos from the 2013 Legislative Conference.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post Co-ops Rally Hill on Key Issues appeared first on Electric Co-op Today.

More constituent letters and emails than ever before are swamping Capitol Hill offices, where the workforce has been shrinking steadily.

Co-ops heard from Chris Stephen (l), Brad Fitch and Nelle Hotchkiss on how to be a terrific advocate. (Photo By: Luis Gomez Photos)

But grassroots perspectives still hold considerable weight among lawmakers in spite of “negative messaging either from Capitol Hill or the media that your voice doesn’t make a difference,” said Brad Fitch of the Congressional Management Foundation.

“Our research has consistently shown—which has not changed in last decade—that constituents are the driving factor in every major decision that members make,” said Fitch, the group’s CEO and president.

“How to Be a Terrific Advocate” was the focus of an April 29 panel on the opening day of the 2013 NRECA Legislative Conference moderated by Christopher Stephen, senior associate director of legislative affairs. Fitch was a panelist.

In “an era where legislation getting passed is not the regular order of the day,” Stephen said it’s not an easy feat making the most of contacts on Capitol Hill and in the district office.

Grassroots messages can cut through the chatter of the thousands of constituent emails and letters pouring into offices, especially over the last decade, said Fitch.

For example, nearly all 260 congressional staffers answering a 2010 CMF survey said personal visits or contact with constituents influenced members of Congress undecided about a particular issue, said Fitch.

“You are more influential than you realize; you are more influential than the media portrays you,” said Fitch. “Constituents drive the bus … keep that in mind when building relationships.”

No doubt about it: Co-ops need to work hard to get message across. “Get to know that district. What makes it tick? You need to understand where you fit and what’s that policy impact in that district,” said Nelle Hotchkiss, director of government and public relations at the North Carolina Electric Membership Corp.

And if things don’t go according to plan, that’s OK, too. Hotchkiss described an unsuccessful attempt by some co-op managers to persuade a junior member of Congress during a local chamber of commerce event to sign a letter supporting the Rural Utilities Service.

“We didn’t get the signature, but the member and D.C. staff know who we are,” because the directors told the member that his district had 255,000 members and six co-ops, said Hotchkiss.

Co-ops should remember that “there are many different ways you can be a friend; it’s not just one thing. An 80 percent friend is not a 20 percent enemy,” said Stephen.

Click here to see a gallery of photos from the 2013 Legislative Conference.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post ‘Be a Terrific Advocate’ appeared first on Electric Co-op Today.

When it comes to cyber security at your electric cooperative, there’s no such thing as too much.

NRECA’s Barry Lawson told co-op leaders that there’s no such thing as too much cyber security. (Photo By: Luis Gomez Photos)

“Your co-op needs to do as much as you can today on cyber security, whether it’s required or not,” said Barry Lawson, NRECA associate director, power delivery and reliability. He stressed that the need for co-ops to up their game on cyber security is real, not some TV hype.

“We all are vulnerable. People are trying to find information—Social Security numbers, credit card numbers, other personal information. Your cooperative most likely has some of that information on your members,” Lawson told an April 29 panel at the 2013 NRECA Legislative Conference. “Your members, I believe, expect that you will take prudent steps in these areas.”

He stressed that “it’s not just looking at worst-case scenarios like someone attempting to take control over the grid. More so, in many, many ways, it’s about protecting information, whether it be member info, financial information about your cooperative, or proprietary plans.”

Lawson said even the smallest distribution co-ops need to “understand what the best practices are, understand what the best standards are, and use those to the extent today that you can.” Today’s preparations will pay off down the road.

“When things start to ramp up, and smaller entities start getting impacted by new laws and regulations, you will be in a much better place,” Lawson said.

Addressing co-ops that already place a strong emphasis on cyber security, Lawson cautioned against complacency.

“It doesn’t mean we’re done. It doesn’t mean we don’t have to keep improving.”

Lawson also discussed the emerging cyber security insurance market.

“It is so very difficult today to quantify the risks and to determine how likely those risks are to be infiltrated, and what kind of damage, from a financial standpoint, we’d have,” Lawson said. But, he added, it is likely that down the road, lenders will require either cyber security insurance, or verification that certain security measures are in place.

Also at the forum, Laura Marshall Schepis, NRECA senior director, legislative affairs, noted that on April 18, the House of Representatives passed the Cyber Intelligence Sharing and Protection Act. The measure aims to make the sharing of cyber threat information a two-way street between the federal government and the private sector, including co-ops.

“Information is the life blood of a grid protection program. And our agency partners have gotten better over the last five or seven years at trusting us and sharing information. But our goal is real-time collaboration,” Schepis said. “We need to be able to have very close, very coordinated communications with our federal partners.”

As the bill heads to the Senate, Legislative Conference participants were urged to tell their senators what they like about it, and what they want to see in a Senate bill.

Click here to see a gallery of photos from the 2013 Legislative Conference.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post Cyber Security Urged for All Co-ops appeared first on Electric Co-op Today.

During the 2013 NRECA Legislative Conference, participants were asked to thank members of the House of Representatives who signed a letter supporting strong funding for the Rural Utilities Service program in fiscal 2014. Here is a list of those lawmakers by state (an asterisk denotes a lead sponsor):

ALABAMA

Co-ops are being asked to thank House members who have shown strong support for RUS. (Photo By: Hemera)

Rep. Martha Roby – R

Rep. Mike Rogers – R

Rep. Terri Sewell – D

ALASKA

Rep. Don Young – R

AMERICAN SAMOA

Rep. Eni Faleomavaega – D

ARIZONA

Rep. Ann Kirkpatrick – D

Rep. Ron Barber – D

Rep. Raúl Grijalva – D

Rep. Paul Gosar – R

Rep. Trent Franks – R

Rep. Kyrsten Sinema – D

ARKANSAS

Rep. Rick Crawford – R

Rep. Tim Griffin – R

CALIFORNIA

Rep. Doug LaMalfa – R

Rep. Jared Huffman – D

Rep. Jim Costa – D

Rep. Raul Ruiz – D

Rep. Karen Bass – D

Rep. Juan Vargas – D

COLORADO

Rep. Diana DeGette – D

Rep. Jared Polis – D

Rep. Scott Tipton – R

Rep. Cory Gardner – R

Rep. Doug Lamborn – R

Rep. Mike Coffman – R

Rep. Ed Perlmutter – D

FLORIDA

Rep. Jeff B. Miller – R

Rep. Steve Southerland – R

Rep. Ted Yoho – R

Rep. Corrine Brown – D

Rep. Rich Nugent – R

Rep. Gus Bilirakis – R

Rep. Dennis Ross – R

Rep. Alcee L. Hastings – D

Rep. Frederica Wilson – D

GEORGIA

Rep. Sanford Bishop Jr. – D

Rep. Henry Johnson – D

Rep. John Lewis – D

Rep. Rob Woodall – R

Rep. Austin Scott – R

Rep. Doug Collins – R

Rep. John Barrow – D

Rep. David Scott – D

HAWAII

Rep. Tulsi Gabbard – D

ILLINOIS

Rep. Bobby L. Rush – D

Rep. Danny K. Davis – D

Rep. Bill Enyart – D

Rep. Rodney Davis – R

Rep. Adam Kinzinger – R

Rep. Cheri Bustos – D

Rep. Aaron Schock – R

INDIANA

Rep. Luke Messer – R

Rep. Andre Carson – D

IOWA

Rep. Bruce L. Braley – D

Rep. Dave Loebsack – D

Rep. Steve King – R

KANSAS

Rep. Lynn Jenkins – R

LOUISIANA

Rep. Cedric Richmond – D

Rep. John Fleming – R

MAINE

Rep. Mike Michaud – D

MICHIGAN

Rep. Dan Kildee – D

Rep. Sandy Levin – D

Rep. John Dingell – D

MINNESOTA

Rep. Tim Walz – D

Rep. Collin Peterson – D*

Rep. Rick Nolan – D

MISSISSIPPI

Rep. Bennie Thompson – D

Rep. Gregg Harper – R

Rep. Steven Palazzo – R

MISSOURI

Rep. William Lacy Clay – D

Rep. Vicky Hartzler – R

Rep. Emanuel Cleaver II – D

Rep. Sam B. Graves – R

MONTANA

Rep. Steve Daines – R

NEBRASKA

Rep. Lee Terry – R

Rep. Adrian Smith – R

NEVADA

Rep. Mark Amodei – R

NEW JERSEY

Rep. Frank Pallone Jr. – D

Rep. Bill Pascrell – D

Rep. Donald Payne Jr. – D

NEW MEXICO

Rep. Michelle Lujan Grisham – D

Rep. Steve Pearce – R

Rep. Ben Luján – D

NEW YORK

Rep. Carolyn McCarthy – D

Rep. Charles Rangel – D

Rep. Chris Gibson – R

Rep. Bill Owens – D

Rep. Richard Hanna – R

Rep. Dan Maffei – D

Rep. Chris Collins – R

NORTH CAROLINA

Rep. G. K. Butterfield – D

Rep. Walter B. Jones – R

Rep. David Price – D

Rep. Howard Coble – R

Rep. Mike McIntyre – D

Rep. Mark Meadows – R

Rep. Mel Watt – D

NORTH DAKOTA

Rep. Kevin Cramer – R

NORTHERN MARIANA ISLANDS

Rep. Gregorio Sablan – D

OHIO

Rep. Joyce Beatty – D

Rep. Bill Johnson – R

Rep. Bob Gibbs – R

Rep. Steve Stivers – R

OREGON

Rep. Suzanne Bonamici – D

Rep. Peter DeFazio – D

Rep. Kurt Schrader – D

PENNSYLVANIA

Rep. Mike F. Doyle – D

Rep. Matt Cartwright – D

SOUTH DAKOTA

Rep. Kristi Noem – R

TENNESSEE

Rep. Phil Roe – R

Rep. Scott DesJarlais – R

Rep. Marsha Blackburn – R*

Rep. Stephen Fincher – R

TEXAS

Rep. Mike Conaway – R*

Rep. Randy Weber -R

Rep. Ruben Hinojosa – D

Rep. Bill Flores – R

Rep. Lamar S. Smith – R

Rep. Pete Gallego – D

Rep. Filemon Vela – D

Rep. Lloyd Doggett – D

Rep. Steve Stockman – R

UTAH

Rep. Chris Stewart – R

Rep. Jim Matheson – D

VERMONT

Rep. Peter Welch – D

VIRGINIA

Rep. Robert Hurt – R

Rep. Bob Goodlatte – R

Rep. Gerald Connolly – D

VIRGIN ISLANDS

Rep. Donna Christensen – D

WASHINGTON

Rep. Doc Hastings – R

WISCONSIN

Rep. Mark Pocan – D

Rep. Ron Kind – D

Rep. Reid Ribble – R

WYOMING

Rep. Cynthia Lummis – R

The following lawmakers sent separate letters of support for RUS:

FLORIDA

Rep. Joe Garcia – D

KENTUCKY

Andy Barr – R

MINNESOTA

Rep. John Kline – R

MISSOURI

Rep. Blaine Leutkemeyer – R

Rep. Ann Wagner – R

Rep. Bill Long – R

NEW YORK

Rep. Thomas Reed – R

NORTH CAROLINA

Rep. Renee Ellmers – R

SOUTH CAROLINA

Rep. Joe Wilson – R

Rep. Jeff Duncan – R

Rep. Trey Gowdy – R

Rep. Mick Mulvaney – R

Rep. Tom Rice – R

UTAH

Rep. Jason Chaffetz – R

Click here to see a gallery of photos from the 2013 Legislative Conference.

The post Thank You RUS Supporters appeared first on Electric Co-op Today.

An important cyber security bill that could help electric cooperatives fight potential threats has cleared the House of Representatives.

A cyber security bill supported by NRECA has passed the House. (Photo By: iStockphoto)

On a vote of 288-127, the House passed the Cyber Intelligence Sharing and Protection Act, April 18. The goal is to make the sharing of cyber threat information a two-way street between the federal government and the private sector, including co-ops.

“Under the new structure, utilities could share suspicious activity detected on their networks with government, and also receive a flow of threat and vulnerability information from the federal government,” said Laura Marshall Schepis, NRECA senior director, legislative affairs, noting that the association supports the measure.

“Co-ops need more and better information about viruses, malware, and bad actors who seek to attack control systems, like SCADA, and other elements of the bulk electric grid,” Schepis said. “Agencies have done better over the past five years at providing this type of information, but nothing has changed in law requiring the agencies to continue this level of performance or improve it.”

The Department of Homeland Security will be the primary point of contact for the private sector, after some House members expressed concern with the initial plan to give intelligence agencies that role.

Opponents had also raised privacy and civil liberties issues. The bill requires DHS to annually give Congress a review of how information shared with the agency is used, along with recommendations to address any privacy and civil liberties concerns.

“I am very proud that so many of my colleagues were able to look past the distortions and fear mongering about this bill, and see it for what it really is—a very narrow and focused authority to share cyber security threat information to keep America safe,” said Rep. Mike Rogers, R-Mich., chairman of the House Intelligence Committee and the bill’s chief sponsor.

“Our nation is one step closer to making a real difference protecting our country from a catastrophic cyber attack,” added Rep. C.A. Dutch Ruppersberger, D-Md., the committee’s ranking member and a partner with Rogers throughout the effort.

The bill now heads to the Senate, where its chances look better now that the privacy and intelligence agencies concerns have been addressed.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post Cyber Security Bill Passes House appeared first on Electric Co-op Today.

President Obama’s fiscal 2014 budget calls for a strategic review of the Tennessee Valley Authority, with an eye toward selling the nation’s largest public power provider.

President Obama’s fiscal 2014 budget puts the idea of selling the Tennessee Valley Authority, and its dams like Fort Loudoun, on the table. (Photo By: TVA)

But the proposal, which blindsided TVA officials, might run afoul of a 1986 law that already bars putting TVA on the market without congressional authorization.

The 27-year-old law came into focus because Obama’s budget, released April 10, contained a surprise announcement that the administration will seek a strategic review of TVA.

Citing the authority’s debt constraints and capital requirements, the administration will consider the possible divestiture of TVA “in part or as a whole,” the budget document said.

“Reducing or eliminating the Federal Government’s role in programs such as TVA, which have achieved their original objectives and no longer require Federal participation, can help put the Nation on a sustainable fiscal path,” budget writers said in a section on “Creating a 21st Century Government.”

NRECA officials said they regard the budget recommendation as suspect and misguided.

TVA provides power to 155 electric cooperatives and municipal systems, so a sale or other modifications could have major consequences for those customers.

“The rationale behind the administration’s proposal appears to be extremely dubious,” said Kirk Johnson, NRECA senior vice president, government affairs. “NRECA will be coordinating an appropriate response with affected co-ops to ensure no changes are made that hurt co-op consumer-members.”

A provision in a 1986 supplemental appropriations act bans the use of federal funds to solicit or study any proposals designed to transfer ownership or control of TVA and the four federal power marketing administrations, unless Congress approves.

That came in response to an attempt by the Reagan administration to consider selling TVA and the PMAs. Reagan signed the bill into law in July 1986, though he objected in his signing statement to the prohibition on considering the sale of TVA and the PMAs.

In a response to the Obama administration, TVA issued a statement saying it will work with the Office of Management and Budget to meet the strategic review request. It quickly added that it is on solid financial ground.

“TVA is the lowest cost business model and the best value for the region. We remain financially healthy,” said John Thomas, chief financial officer.

Sen. Lamar Alexander, R-Tenn., roundly criticized the Obama budget, calling the possible sale of TVA “one more bad idea in a budget full of bad ideas.

“There is today no federal taxpayer subsidy for TVA, period. There is by law no federal taxpayer liability for TVA debt. And after deducting its debt, selling TVA would probably cost taxpayers money,” he said.

Get the latest news from ECT.coop and sign up for your personalized news alerts.

The post Is TVA Up for Sale? appeared first on Electric Co-op Today.