[Congressional Record Volume 143, Number 13 (Wednesday, February 5, 1997)]
[Extensions of Remarks]
[Page E160]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF LEGISLATION TO END SUBSIDIES FOR THE TENNESSEE VALLEY 
                               AUTHORITY

                                 ______
                                 

                            HON. BOB FRANKS

                             of new jersey

                    in the house of representatives

                      Wednesday, February 5, 1997

  Mr. FRANKS of New Jersey. Mr. Speaker, today I rise to introduce with 
my colleague, Representative Marty Meehan, a bill entitled the 
Tennessee Valley Authority First Step Reform Act.
  Two weeks ago, Tennessee Valley Authority Chairman Craven Crowell 
asked Congress to eliminate its $106 million annual appropriation, so 
that the TVA can concentrate on its electricity business in preparation 
for upcoming energy deregulation. As a Federal agency since 1933, the 
Tennessee Valley Authority has provided the Tennessee Valley with flood 
protection, agricultural and industrial development, and electric 
power. Thanks to TVA's efforts, the economy of the Tennessee Valley has 
been greatly enhanced. However, as the TVA makes the transition to 
becoming an independent power producer, I congratulate the TVA for 
their recent initiative to eliminate its $106 million appropriation. 
This legislation would codify that request by ending all appropriations 
for the TVA after fiscal year 1998.
  Second, this bill would order the Office of Management and Budget to 
provide an independent audit of the rest of the Federal subsidies 
enjoyed by the TVA, as well as a plan to completely wean the TVA off 
taxpayer subsidies.
  Today, I am distributing to every Member of Congress a report that 
describes the TVA's direct and indirect government subsidies. These 
include over $1.2 billion in Federal and State tax exemptions, reduced 
borrowing costs, and exemptions from many Federal regulations that all 
other utility companies must obey. These subsidies allow TVA to provide 
cheap power to a select region subsidized at the expense of the 
taxpayers in the rest of the United States. This practice should not be 
allowed to continue.
  As we move toward deregulation of the electric utility industry, 
these subsidies will give TVA an unfair advantage over the utility 
companies that pay taxes and are required to abide by State and Federal 
regulations. It is time we leveled the playing field. This legislation 
is the first step in making these reforms.
  I urge my colleagues to cosponsor this legislation.

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