Number: RL32798
Title: Power Marketing Administrations: Proposals for Market-Based Rates
Authors: Kyna Powers, Resources, Science, and Industry Division 
Abstract: The federal government operates four agencies created to market power generated at federally constructed multi-purpose dams. The four power marketing administrations - Bonneville Power Administration (BPA), Southeastern Power Administration (SEPA), Southwestern Power Administration (SWPA), and Western Area Power Administration (WAPA) - sell power to publicly or cooperatively owned utilities at rates based on their costs. Increasing power marketing administrations' (PMAs')prices to market rates would generate both costs and benefits. Supporters argue that it would correct price signals, encourage conservation, and increase returns to the Treasury. However, this proposal would increase costs for consumers of PMA power and could have further ramifications for jobs and tax revenues. The Pacific Northwest, which receives 40% of its power from BPA, would likely see the largest economic effects. This report provides background information on PMAs' budgets and rates, and briefly discusses the President's proposal.
Pages: 7
Date: March 11, 2005