U.S. Rep. Mo Brooks of North Alabama grabbed his glasses to scan page 51 of President Barack Obama's budget request Wednesday and turned red as he absorbed a seven-sentence proposal that could put TVA in private hands, alter rates for 9 million customers and jeopardize 12,000 employees.That seems as dumb as selling the Ohio Turnpike, and even John Kasich wasn't stupid enough to do that.
Tucked under a heading of "Creating a 21st Century Government" in the president's nearly 230-page fiscal 2014 budget document is a the section that states:
"Given TVA's debt constraints and the impact to the federal deficit of its increasing capital expenditures, the administration intends to undertake a strategic review of options for addressing TVA's financial situation, including the possible divestiture of TVA, in part or as a whole."
Brooks wasn't the only congressional lawmaker shocked by the idea -- especially since TVA's power programs have been completely ratepayer funded since 1959.
It's correct that TVA's roughly $24 billion in debt is carried as part of the federal deficit, but ratepayers pay TVA's debt, not taxpayers.
"There is today no federal taxpayer subsidy for TVA, period," stormed U.S. Sen. Lamar Alexander, R-Tenn. "There is by law no federal taxpayer liability for TVA debt. And after deducting its debt, selling TVA would probably cost taxpayers money."
Alexander issued the statement shortly after the proposed budget was released.
Thursday, April 11, 2013
Is Obama A Closet Republican?
His budget includes looking at selling the TVA:
Labels:
Bad Ideas,
Engineering and Infrastructure
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