[Congressional Record Volume 144, Number 151 (Wednesday, October 21, 1998)]
[Extensions of Remarks]
[Page E2277]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROTESTING SECTION 103 OF DIVISION A OF THE OMNIBUS APPROPRIATIONS BILL

                                 ______
                                 

                      HON. RODNEY P. FRELINGHUYSEN

                             of new jersey

                    in the house of representatives

                       Tuesday, October 20, 1998

  Mr. FRELINGHUYSEN. Mr. Speaker, today I introduced a measure to 
correct H.R. 4328 by striking section 103 of division A. As passed now, 
section 103 of division A will cost American taxpayers $1 billion 
because it permits the Tennessee Valley Authority to refinance some of 
its $30 billion debt through the Federal Government.
  I have thought for a long time that New Jersey taxpayers should not 
have to help pay to subsidize electricity for the Tennessee Valley 
which is one reason why I have fought to end the Federal Government's 
subsidies for TVA. But compared to TVA's refinancing deal, the non-
power program subsidy was peanuts. Taxpayers will be footing the bill 
for this backroom deal and the cost is over $1 billion.
  Striking out this section would wipe out the hidden provision to 
allow TVA to refinance its billions of dollars of debt through the 
Federal Government at the cost of U.S. taxpayers.
  Since the New Deal, TVA has asked for and received the Federal 
Government's help to control flood waters in the Tennessee Valley, but 
when it comes to the flood of Federal dollars for the TVA, they just 
say ``let it flow.'' This refinancing scheme and extra funding is not 
fair to taxpayers in New Jersey and all around America and it is 
against the expressed will of Congress.
  I led the efforts to zero out this annual Federal subsidy contained 
in the Energy and Water Appropriations bill. Both House and Senate 
Appropriators agreed with me, and this year we cut the $70 million 
subsidy in the FY99 Energy and Water Appropriations bill already signed 
into law by the President.
  But in a last-minute deal, two amendments slipped into the Omnibus 
bill which will cost the taxpayers. One amendment would provide $50 
million for the TVA's non-power programs in 1999. But another provision 
would cost taxpayers much more than the $50 million or even the 
original $70 million for TVA's non-power programs. The second TVA 
provision also attached to the Omnibus bill would permit TVA to 
refinance some of its $30 billion debt through the U.S. Treasury's 
Federal Financing Bank. If passed, TVA would be allowed to borrow $3.2 
billion from the Federal Government and taxpayers would be forced to 
pay for the $1 billion cost of this refinancing.
  Despite the vehement protests of appropriators and authorizers, the 
legislation allows this giant utility to refinance its debt without 
paying the contractually-required prepayment penalty.
  TVA is already $30 billion in debt, pays no taxes, enjoys access to 
low-cost capital, and avoids scores of Federal laws and State 
regulations. The taxpayers must not be burdened further by TVA.

                          ____________________