[Congressional Record Volume 141, Number 72 (Wednesday, May 3, 1995)]
[Senate]
[Page S6025]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  THE POWER MARKETING ADMINISTRATIONS

  Mr. CONRAD. Mr. President, I thank the Chair and thank my colleague. 
I would like to speak just briefly on the PMA matter and then speak on 
another issue as well.
  With respect to the PMA matter, I salute my colleagues who have come 
to the floor to oppose the sale of PMA's. Let me say I believe sale of 
the Power Marketing Administrations represents a very bad idea. It is 
bad for rural America. It represents bad faith. It is bad economics and 
it is bad policy.
  This would have a very serious impact on rural America. In my State 
we would see an increase in rates of up to 60 percent; 240,000 
customers in North Dakota would be adversely affected. Those rural 
customers are already paying rates that are 15 to 40 percent higher 
than city customers. The reason for that, of course, is very obvious. 
There is much less of a load per mile in rural areas than in city 
areas, so the costs are higher.
  Mr. President, this would be a very serious matter for rural America. 
It also represents bad faith. The Government made a deal. The deal was 
this power was going to go to help rural America. That is precisely why 
the Federal Government entered into this enterprise. Preference power, 
it should be emphasized, is not a subsidy. These facilities are being 
repaid with interest. I believe the sale also represents bad economics. 
Selling the PMA's would be a one-time shot. It does not reduce the 
deficit because their own budget rules say you cannot sell assets to 
reduce the deficit. So, Mr. President, selling these facilities forgo 
decades of steady income.
  Finally, I believe the PMA sale represents bad policy. These dams 
serve multiple purposes. No private entity can balance the interests of 
power production with flood control, navigation, water supply, and 
wildlife values.
  Mr. President, for those reasons I oppose the sale of the PMA's.

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