FEDERAL POWER: The Evolution of Preference in Marketing Federal Power
Abstract
For decades, the power marketing administrations (PMA)1 of the Department of Energy (DOE) have provided electricity, generated largely at federal multipurpose water projects, to customers in over 30 states. To guide the PMAs efforts in marketing electricity, the Congress and the courts have directed the PMAs to give certain customers preference. Generally, preference is the opportunity to obtain priority access to federal power that has traditionally been sold at rates generally below those of other sources. Preference provisions come into play only when a potential customer that does not have preference (such as an industrial user or a commercial power company) and a preference customer (such as a municipally owned utility or a rural electric cooperative) want to buy federal power and not enough is available for both. As we enter the 21st century, the electricity industry is restructuring from one dominated by regulated monopolistic electric utilities to one that increasingly allows customers to choose their source of electricity. The Congress continues to consider legislation dealing with this industry s restructuring, including the role of preference in the PMAs sale of electricity.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 2001
- Accession Number
- ADA387583
Entities
Organizations
- United States Government Accountability Office