Lucas Fights Possible Electric Rate Increase
LUCAS FIGHTS POSSIBLE ELECTRIC RATE INCREASE
U.S. Congressman Frank Lucas is urging the Office of Management and Budget to reverse a policy that could cause an increase in electricity rates for more than 875,000 Oklahomans.
Lucas, along with Rep. Marion Barry(D-AR), is leading a group of 18 Members of Congress from five states being affected by the OMB policy. They are asking OMB Director Rob Portman to reverse their policy that prevents the use of the Continuing Fund.
"Consumers are already facing higher energy costs on their electricity bills as well as in their gas tanks," Lucas said. "Any increase in electricity rates by OMB in Washington would put an additional strain on Oklahoma pocketbooks, especially those folks who are on a fixed income."
Southwestern Power Administration delivers electricity that comes from Corps of Engineers hydroelectric dams at cost to its customers. But when dam water levels are too low to create power, SWPA uses the Continuing Fund to cover the costs of electricity demand. The Continuing Fund was established by Congress in 1989 to allow SWPA and others to buy power to meet demand during drought conditions. When used, the fund is reimbursed by customers with interest over a five-year period, so the use of the fund has no impact on the treasury.
"The severe drought we've experienced is exactly the situation that this fund was designed for," Lucas said. "The water levels are at record lows, and Southwestern Power will need to supplement its power by using this fund."
But OMB has recently changed its position on the use of the Continuing Fund, and is refusing to let SWPA use the fund. As a result, SWPA will not be able to meet its power contracts to its customers - the rural electric cooperatives and municipal electric utilities. They will then have to find power at higher rates, passing those higher costs on to customers.
"These Washington bureaucrats may not know it, but they're setting off a chain of events that could have a real impact on my constituents' bottom line," Lucas said. "So I'm going to make sure they get the picture that their actions have an effect in the real world."
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http://www.house.gov/list/press/ok03_lucas/continuingfund.html