February 12, 2018 / 10:56 PM / 11 days ago

Trump proposes to sell parts of TVA and other federal power companies

(Reuters) - U.S. President Donald Trump on Monday asked Congress to allow federal power companies such as the Tennessee Valley Authority to divest transmission assets to state, local or private entities, as part of its outline for rebuilding infrastructure in America:

- Federal ownership of these assets can result in “sub-optimal investment decisions and create risk for taxpayers,” the White House said.

- Providing federal agencies authority to divest of federal assets where the agencies can demonstrate an increase in value from the sale would optimize the taxpayer value, the plan said.

- Examples of assets for potential divestiture include the transmission owned by Southwestern Power Administration, Western Area Power Administration, Tennessee Valley Authority (TVA) and Bonneville Power Administration.

- The American Public Power Association (APPA), a trade group representing public power companies, said in a statement it was disappointed by the divestiture proposal.

- APPA noted the transmission assets have been paid for by electricity customers.

Reporting by Sumita Layek in Bengaluru and Scott DiSavino in New York

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