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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: George Coyne who wrote (132775)	3/22/2001 8:32:42 AM
From: Roger A. Babb	Respond to of 769667

George, I agree that TVA power is lower because of the low cost federal financing. It was financing, not a gift, but financing at lower interest rates than available to private companies. Plus tax advantages. Somewhat counterbalanced by having to provide management positions on the "spoils" system to every new US President. The example set by the low cost TVA power makes it difficult for neighboring utilities to over charge for their power and thus does influence rates in all of the Southeast. I would argue that this is a good thing, but the de-regulation advocates say that low cost power is "bad for competition" and are trying to force TVA to raise rates. It is interesting to hear the de-regulation advocates claim that competition will lower rates, but then cry foul when someone offers low cost power into the market. Even though TVA has a surplus of low cost power, it is prevented by law from selling power to other utilities outside its immediate service area.