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OCR Page 1 of 9Power Marketing Authority
To: Leon, Harold, Pat, Susan, Bruce
Fr: Emerson
Dt: 2/1/95
Re: Sen. Pryor--Public Utilities
Sen. Pryor called me twice regarding his concern about an
OMB proposal to privatize federal dam power facilities. The
proposal would hit California, the South and the Mid-west hard.
(Apparently, Bonneville and therefore the Northwest are
exempted.) The net effect of the privatization would be,
according to Pryor, a substantial rate increase, especially in
rural areas. Rates will rise on 1/3 of Arkansas customers, for
instance.
Pryor says that former Rep. Glenn English, a POTUS supporter
who represents the National REA, says local companies will have
no choice but to publicly blame the President for rate increases.
Pryor is concerned that the political ramifications of this
decision be well considered.