Power Marketing Administrations: Offsetting Collections in the President's FY2006 Budget Proposal

Publication Date: March 2005

Publisher: Library of Congress. Congressional Research Service

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Research Area: Energy

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Abstract:

The federal government operates four Power Marketing Administrations (PMAs) to market hydropower generated at federally constructed dams. The President's FY2006 budget proposal includes a reclassification of receipts to allow three of these PMAs -- Southeastern Power Administration, Southwestern Power Administration, and Western Area Power Administration -- to fund their program direction and their operation and maintenance (O&M) expenses through offsetting collections. It also proposes that the PMAs use offsetting collections to directly finance some Corps of Engineers and Bureau of Reclamation hydropower expenses. The PMAs currently deposit receipts into the Treasury and Congress appropriates general Treasury funds to the PMAs, Corps, and Bureau for these power-related expenses. The President's proposal would have little or no effect on PMA's power rates, while the effect on Corps and Bureau funding is uncertain. It would, however, reduce the amount of money PMAs deposit into the Treasury. This report will not be updated.