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DOE: Only Congress can require sale of federal transmission assets

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DOE: Only Congress can require sale of federal transmission assets

Responding to reports by federal lawmakers that the U.S. Department of Energy has dropped plans to sell the Bonneville Power Administration's transmission system, the DOE clarified that Congress has the ultimate say on whether those federally owned assets should be divested.

On May 24, Republican U.S. Reps. Cathy McMorris Rodgers, Jaime Herrera Beutler, Dan Newhouse and Dave Reichert, all from Washington, issued a statement applauding what they said was the DOE's announcement that it will not pursue its proposed sale of BPA's power lines. The agency proposed the sale as part of its fiscal year 2019 budget request to Congress, in which the White House also called for selling the transmission assets of the Tennessee Valley Authority, Southwestern Power Administration and Western Area Power Administration.

Western lawmakers fear that divesting BPA's assets, a proposal the DOE included in its fiscal year 2018 and 2019 budget requests, would raise rates for electricity consumers relying on BPA's hydroelectric generation, which is currently sold at cost.

"It's a big relief to know that this harmful proposal will not be pursued," the Washington legislators said.

The Energy Department did not confirm it made such assurances to the BPA or other federal power marketing administrations and emphasized that only Congress has the power to authorize or reject such a sale.

"The Department of Energy will not pursue the sale of any [power marketing administration's] transmission assets unless directed by Congress," DOE spokesperson Shaylyn Hynes said. She recalled that Energy Secretary Rick Perry said the same thing during recent Congressional testimony, and agency staff affirmed that position to federal lawmakers representing the Northwest on May 25.

Public power groups including the American Public Power Association and the National Rural Electric Cooperative Association have blasted proposed sales of federal power assets, an idea floated under past administrations including that of former President Barack Obama. Proponents of the sales say they could generate revenue for the federal government, but critics point out that any appropriations the power marketing administrations receive from Congress are paid back to the U.S. Treasury with interest.