On the recordNovember 6, 1997
I wish to draw the Senator's attention to the plain meaning of section 2812 so that there is no confusion in its application or implementation. First, the plain meaning of the provision does not limit the Secretary of a military department's authority to convey electric utility assets present at a military base. There is no requirement that both electric generation and distribution facilities be present at a base in order for the Secretary of a military department to convey assets. Indeed, the plain language of section 2812 states that such Secretaries may ``convey a utility system, or part of a utility system.'' Second, section 2812 has no effect whatsoever on existing preference power allocations. If an entity that is not currently eligible for--or is not currently receiving--preference power buys an electric utility system at a base which is entitled to receive preference power, the base will continue to receive that preference power--subject of course to the terms of existing contracts, rights, or obligations. There is nothing whatsoever in the plain meaning of section 2812 to the contrary, nor is there any language in the provision supporting the idea that a base's preference power allocation will transfer to any asset purchaser that buys a military base utility system.
Source
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