Power Marketing Administration Background Four Power Marketing Administration Facilities (PMAs) market electricity from federally owned facilities in the Northwest, West, Southwest, and Southeast. PMAs and the Tennessee Valley Authority sell electricity at below market rates to select customers. The federally owned power plants emit pollution that harms air quality and human health. According to a 1997 General Accounting Office study, the federal indebtedness for five PMAs is $24.4 billion, and these PMAs cost the U.S. Treasury at least $400 million annually. The study also found that at least three PMAs have projects or rate-setting systems that make additional costs to the Treasury probable.
Green Scissors Proposal The U.S. should sell the right to market electricity produced by federally owned facilities while retaining ownership and operation of the facilities. According to a 1997 Congressional Budget Office study, selling this electricity at market rates would raise an estimated $200 million per year.
Project Hurts Taxpayers PMAs are a costly, unnecessary government agency standing between consumers and electricity. The marketplace is very adept at selling electricity, and no government intervention is needed.
PMAs distort market choices by selling electricity only to certain customers. Customers without access to federal power must develop higher-cost energy resources.
Project Hurts Environment PMAs rely too heavily on polluting and environmentally destructive forms of electricity generation. By selling electricity at below-market rates, PMAs encourage customers to waste electricity.
$1 billion