To understand the Trump administration’s latest plan to sell off federal electric transmission systems, it’s worth consulting that great American philosopher Lawrence “Yogi” Berra: “It’s déjà vu all over again.”
The administration’s government reorganization plan, unveiled last week, contains a proposal to sell off the transmission assets of the Tennessee Valley Authority, the Southwestern Power Administration, Western Area Power Administration, and Bonneville Power Administration. It’s unlikely to gain significant political traction.
Republican administration going back at least to the Reagan White House have made runs at privatizing the federal electric power system, housed at the Department of Energy but essentially running as independent entities. The Clinton administration also floated a privatization scheme. None succeeded.
Trump’s budget requests to Congress for fiscal years 2018 and 2019 contain identical proposals, which went nowhere. It’s clear that the sell-off has little backing even at the White House, where it isn’t clear that Trump can spell TVA, let alone grasp what it and the power marketing administrations actually do. The proposals have always had their origins at the Office of Management and Budget, where the folks with the libertarian green eyeshades see an opportunity to bring some quick cash into the government while making it smaller.
Historically, among the most ardent proponents of selling the federal power assets have been the Cato Institute, the Competitive Enterprise Institute, and the Heritage Foundation.
Sue Kelly, the savvy head of the American Public Power Association, quickly put out a statement opposing the latest sell-off plan. She said, “The PMAs provide millions of Americans served by not-for-profit public power and rural electric cooperative utilities with cost-based hydroelectric power produced at federal dams. PMA rates are set to cover all generation and transmission costs, as well as repayment, with interest, of the federal investment in these hydropower projects. None of the costs are borne by taxpayers. Similarly, TVA provides affordable electric power to more than nine million people in seven states at no cost to taxpayers.”
Kelly added, “Selling TVA and PMA transmission assets and/or increasing PMA rates by changing the current cost-based structure would threaten the ability of the PMAs to provide reliable, cost-based power to the approximately 1,200 public power systems and rural electric cooperatives in 33 states and the millions of customers they serve.” APPA “will continue to adamantly oppose any effort by the federal government to privatize TVA and PMA assets that have been paid for by electricity customers.”
Washington federal budget guru Stan Collender, in his “The Budget Guy” blog, included the Trump reorganization plan in his recent post, “This Was the Worst Week EVER for GOP Federal Budget Nonsense.” The consolidations and reorganization plan “at this point in the congressional session has little-to-no chance of being considered and even less of being adopted.”
But it’s likely the electric privatization issue will arise again in this and future administrations, and, as Yogi Berra said, “It isn’t over until it’s over.”
–Kennedy Maize