I

103D CONGRESS

2D SESSION H. R. 3780

To direct the President to develop a plan for transferring all real property,

facilities, and equipment of the Federal Power Marketing Administrations

to public and private entities, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 2, 1994

Mr. INGLIS of South Carolina introduced the following bill; which was referred

to the Committee on Natural Resources

A BILL

To direct the President to develop a plan for transferring

all real property, facilities, and equipment of the Federal

Power Marketing Administrations to public and private

entities, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Federal Power Market5 ing Administrations Privatization Act of 1994’’.
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1 SEC. 2. PRIVATIZATION OF FEDERAL POWER MARKETING

2 ADMINISTRATIONS.

3 (a) SENSE OF CONGRESS.—It is the sense of Con4 gress that—

5 (1) the power generation and transmission fa6 cilities of the Federal Power Marketing Administra7 tions should be privatized; and

8 (2) the transfer of all property of the Federal

9 Power Marketing Administrations remaining after

10 such privatization should be made to other Federal,

11 State, and local agencies in an orderly and expedi12 tious manner.

13 (b) PURPOSES.—The purposes of this section are—

14 (1) to achieve the intention of Congress set

15 forth in subsection (a) by requiring the President to

16 develop a plan—

17 (A) for the sale of the power generating

18 and transmission facilities and equipment of the

19 Federal Power Marketing Administrations to

20 the private sector in groupings that will intro21 duce competition into the generation and sale of

22 electric power;

23 (B) for the transfer to other governmental

24 entities of all property of the Federal Power

25 Marketing Administrations remaining after the
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1 sales and transfers described in subparagraph

2 (A); and

3 (C) for the orderly termination of the Fed4 eral Power Marketing Administrations after the

5 completion of such sales and transfers; and

6 (2) to provide a method for reducing the na7 tional debt through the use of the income derived

8 from such sales and transfers.

9 (c) PRIVATIZATION PLAN.—

10 (1) IN GENERAL.—Not later than September

11 30, 1994, the President shall develop and transmit

12 to Congress a plan for transferring, by sale or other13 wise, all real property, facilities, and equipment of

14 the Federal Power Marketing Administrations to ap15 propriate public and private entities.

16 (2) CONTENTS.—The plan to be developed

17 under paragraph (1) shall include, at a minimum,

18 recommendations (including legislative recommenda19 tions) of the President concerning each of the follow20 ing:

21 (A) TRANSFER OF POWER FACILITIES AND

22 EQUIPMENT.—Transfer by sale of the power

23 generation and transmission facilities and

24 equipment of the Federal Power Marketing Ad25 ministrations, including real property used in
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1 connection with such facilities and equipment,

2 for the purpose of maximizing proceeds from

3 such sales. Such transfers may provide for the

4 sale of generating equipment and facilities to

5 persons other than the persons to whom trans6 mission facilities are sold. Such transfers shall

7 be subject to the following conditions: Former

8 customers of power from the Federal Power

9 Marketing Administrations shall continue to be

10 served and reliability of service shall be ensured

11 by establishing control areas in cooperation

12 with surrounding control areas. Such transfers

13 may provide, to the extent practicable, for the

14 grouping of facilities utilizing different sources

15 of power (including coal-fired, nuclear, and hy16 droelectric generating facilities) and provide for

17 access to the transmission grids of the Federal

18 Power Marketing Administrations by such

19 groupings to ensure availability of power from

20 different sources and to enhance competition.

21 All outstanding loans associated with such fa22 cilities and equipment shall be assumed by the

23 purchasers.

24 (B) TRANSFER OF JURISDICTIONAL AU25 THORITY OVER REAL PROPERTY.—Transfer to
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1 appropriate governmental departments and

2 agencies, including the National Park Service,

3 of jurisdictional authority over real property

4 which is controlled by the Federal Power Mar5 keting Administrations and which is not trans6 ferred under subparagraph (A).

7 (C) TRANSFER OF CERTAIN FUNCTIONS.—

8 Transfer to appropriate Federal departments

9 and agencies of functions of the Federal Power

10 Marketing Administrations which are not relat11 ed to power generation and sale.

12 (D) TERMINATION OF FEDERAL POWER

13 MARKETING ADMINISTRATIONS.—Termination

14 of the Federal Power Marketing Administra15 tions after the transfers under subparagraphs

16 (A), (B), and (C) have been made.

17 (3) ADDITIONAL REQUIREMENTS.—The plan

18 developed under paragraph (1) shall include—

19 (A) a step-by-step procedure to carry out

20 the sales and transfers described in paragraph

21 (2);

22 (B) a timetable for implementation of each

23 step of the plan;

24 (C) an estimate of the amount of antici25 pated net proceeds from the sale of assets of
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1 the Federal Power Marketing Administrations;

2 and

3 (D) an estimate of the cost of implement4 ing the plan.

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