Energy assets privatization: Transfer PMAs (Federal Power Marketing Authorities) to the private sector

Journal Article · Tue Aug 01 04:00:00 EDT 1995 · Cogeneration and Competitive Power Journal

OSTI ID:87592

A new group--the Alliance for Power Privatization (APP)--has been formed to support and promote privatization of the federal power marketing authorities and associated generation assets (PMAs). The group embraces privatization of the PMAs through asset divestiture--the sale of the federal power marketing assets. The Alliance believes that the assets should be sold to the highest bidder and not just to a select group of preferred purchasers. The assets associated with the PMAs include the rights to market power produced at the federal facilities and the generation equipment associated with energy production at those facilities. The paper discusses the background of the five current PMAs, procedures recommended for privatization of the PMAs, international privatization of electric companies and lists comments from others on PMAs. People in both public service and private industry today believe that the federal government, especially in this era of massive deficits, should concentrate on providing truly essential government programs and eliminate those which only benefit a small segment of the population. PMAs benefit a minority of US citizens (6% of the Nation`s electricity is from the PMAs) while the vast majority of US taxpayers continue to pump hundreds of millions of dollars into them each year. A sale of PMAs would yield anywhere from $3.4 billion to nearly $10 billion in proceeds for the federal government. Those proceeds could be used to reduce the deficit and ease the pressure to cut or eliminate other, more essential programs.

• OSTI ID: 87592
• Journal Information: Cogeneration and Competitive Power Journal, Journal Name: Cogeneration and Competitive Power Journal Journal Issue: 3 Vol. 10; ISSN CCPJE8; ISSN 1066-8683
• Country of Publication: United States
• Language: English

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