[Congressional Record Volume 151, Number 103 (Tuesday, July 26, 2005)]
[Senate]
[Page S8960]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BUNNING (for himself and Mr. McConnell):
  S. 1499. A bill to amend the Federal Power Act to provide for 
competitive and reliable electricity transmission in the Commonwealth 
of Kentucky; to the Committee on Energy and Natural Resources.
  Mr. BUNNING. Mr. President, I rise to introduce the Kentucky 
Competitive Access Program (KCAP) bill that would allow Kentucky 
electric distribution companies to purchase cheaper power. This means 
lower rates for many Kentucky consumers served by the Tennessee Valley 
Authority (TVA). I am pleased Senator McConnell has joined me in 
introducing this bill.
  Kentucky has some of the cheapest electric power available in the 
Nation. However, some Kentucky consumers in TVA are paying higher 
electricity rates than Kentucky consumers outside of TVA.
  Kentucky electric distribution companies served by the TVA can not 
provide their customers with access to Kentucky's inexpensive power. 
This is because under existing federal law the Federal Energy 
Regulatory Commission (FERC) has limited authority over TVA and can not 
require it to transmit the cheaper power to most, if not all, of the 
Kentucky distributors. The legislation removes this restriction and 
provides the FERC with the authority to require TVA to transmit power 
to all Kentucky distributors.
  In addition to allowing Kentucky customers to access less expensive 
power, the legislation would not harm TVA or result in higher rates to 
TVA's remaining customers. The Kentucky distributors, in total, 
constitute only about 6 percent of TVA's revenues and load. Further, 
TVA is experiencing load growth of about 3 percent per year which 
should quickly result in the replacement of any load lost in Kentucky. 
Thus, the departure of some portion of the Kentucky distributors should 
not result in any significant cost shift to remaining TVA system 
customers.
  All Kentuckians deserve to choose where they receive their power. 
This bill will not only give them that choice, but it will also create 
a more competitive environment among Kentucky distributors and allow 
our businesses and residential consumers to keep more money in their 
pockets.
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