N E W S
| March 17, 2005 |
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| WASHINGTON, DC - Montana’s Congressman Denny Rehberg today lauded the House Budget resolution striking of an Administration proposal that would have raised rural electric rates across Montana. The budget resolution, to be approved this afternoon in the House, declares “the President's proposal to require Power Marketing Administrations to charge market rates” vs. cost would not save the government money.
“This is a victory for Montana’s small businesses and families, and it was a real close call for our rural economy,” Rehberg, a member of the House Appropriations Energy & Water Subcommittee, said. “We went to great lengths in our appeal with the Budget committee over the urgency of striking this ridiculous proposal. Hopefully, we’ve also sent a message to the Administration number crunchers that ‘we mean business; don’t try this again.’” The proposal, found in the President’s 2006 budget, would have required the nation’s four Power Marketing Administrations (PMA) to sell their electricity at market-based, instead of cost-based, rates. PMA’s provide much of Montana’s rural electricity. Currently, PMA’s such as the Bonneville Power Administration (BPA) and the Western Area Power Administration (WAPA), sell their power at rates designed to recover the cost and administration of generating and transmitting the power, which typically results in rates 30 - 50% cheaper than market-based power providers. In a letter last week, Rehberg urged House Budget Chairman Jim Nussle (R-IA) and House Resources Chairman Richard Pombo (R-CA) to scrap the proposal, arguing it would “unjustifiably increase” power bills to boost the treasury. Rehberg’s request was granted by the Budget Committee. The House budget resolution serves as the blueprint for all government spending. |
