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<br />'. <br /> <br />r.oll"rllr.tion of Federal Irallsmi'sion Ime, from F"c1o>r~1 pm"" planr,; <br />1{I~hard Freeman, pre,enlly a memher (Ilthe.l ';nnl~S"~" Valley AUlhori- <br />ty Board of Directors, wrole in 1'151 Ihal: <br /> <br />Prh'(Ilt' !IIIJitit!S n'H'f..' (/t!mOfISlm/r'd lil1l/' ,,11,[ '(~'llil! ,II,,! r}!I'\" ll~.' 1I'If .orella"'ll !f! ('ltn~- <br />mil elt'l.'rricify 10 puMtr 1/~('lIciC5 "I fait'," {""'I.l/llr;1/l1t' ,';1 ;!I",,' ol fIll' 1-,'(/1",1/ .1~(lI'r'III' <br />mpn!. althollJ:!h m "ff'I\'/II.HOllrt'l jI1l"11fO/,It, /a"'~ hill'I' "l,','" !~J.ft'rl'd hy pnl'll/""fili:iL'.I, <br />hili nfl'I' a.fft., COn!;fl'.\\' 11(1\ nlllhon:.t>tlll1c I t'derlJ! 1/!',"m-",I' 'I'. "t1~!IIIl'1 i..~ fllI'J, [{.II/HIIII <br />'iiun l/fIn. "rl't'ma/J. . Rt'.'!,/(JIHJla,,(j Ril-t'r I ,;f/<,'I' Ill/MH" I'/Jhl" Ikn'I'Wflh'1If,".In 1\,'"1'/1 <br />,. Rei', J(JJ (.It 4// (11)5/1. <br /> <br />To a very lUI'J;!e degr(':~. CllSll)nll.'r~ I1tW,' ."ll'f\'cd hy nna\ dL'LUil: <br />l:OOpt.:rcHives and hy Illan~' :-.1111111 Id\\'II'" \H:'rc llllahk In :":ol:dlrl.: u(ilily <br />~crvicc lInlilltwv \\'cn,,' i.1hk Itl rdfIll fh~ir lIn 11 ',mall IIlili(ic;-, i.ind Itl~(.' <br />nctvCintagc of thl: :l\'ilIl.lhilil)' uf I'nh:ral pnwcL "illl' l'llil":II1lCllf llf I Ill.' <br />preferent:e dau.'il.', alol1!! willi h.'dl~r;JJ dJ'llrh In I..'JlI:Ollragl.' JIll' l'rcalillJ) <br />flf public power agelh:ic:'i and 1I1l' c,lnSlnJl'ljt~1l (If h'lkrallrall"mi~si;HI <br />lin..:..s, have helped pr(,\'t.:n1IIll.' i.1hu~c Ilf tht.' 11I;IIIi)rh)l~ pt)\\'l"r:. ('d Ihl.' pri- <br />\'~le IItililies. <br />This hislorical hackgroulld SlIggl'''' thai Ih," Cllaclillclll or thc prdel. <br />encl~ I,,'liiLlSC, along wilh FL.'dcral 1=f1on... II) ~Ih":dllrjtg(' the L'h':.'atinn of <br />J1uhli(' power agencies and fhe 1:()n~lnll":liIHl Ill' l'edL'r~d Iranl.,lIli:.;;;-,inn <br />lillt:~J. have retJuL'L'd I he rcliillh"C 1....1\ I ht' p,~\\'erllll IIl\'L'"~,ItH.lH\ llL'd ulih- <br />tic,,,,, The related L.IClllJ"S of IIlI1I1l)!'h'dy rHI\\l"1" and independl'llLl', whidl <br />W~le I~rucial in fhe lir..., ill')liIlKt..' III lilt: L'llilCIIlIt.:'1I1 01 Ihe 'ilaltJle~ whil'h <br />dfford prererl'nc~, arc: e\'en IIWfl.: h:kVillll 111 lilt' l'Olllcxl of Ille dt'ctri~: <br />utility indllstry t0day. DUling lhe pd.,t kw \'Car" Ihe \Hllllher 01 <br />investor-owned utililies ha, decrea,.cd draJllatically, f","u 2115 in ILJ27, <br />tn 251> in 1976.". Puhlic h..,dies and ,ollpnati'e', like Ihe s\Halle' <br />in\'c~tor-nwncd Htilili~s, are the lar!!cl.... of Lilt: ill\'l'~lllr-l)WJlcd sySIC'IllS. <br />Threals to thc powcr supply of the.,c puhlic bod,,-, and cooperativc', <br />sllch as the modifi\:alillll or elimilluliollllf thl' prefl'rl'IlL'C l..'IUlISC, \."ould <br />lead to further cOIH:entralion of nllllrl)) U\l'l' Ihe t:lt'l:lrit: ulilily induslry <br />in the: hands of a rdalively :;maIlIHllnOl'1" Ill' ill\"I'Slllj"'llWIlt'd 1IIililie~. <br />Finally, Congres., ha., heen williJl~ to Illakc r1islillct;ow, ,Ill the basi, <br />of size, a, well as on Ihl' form of ol>l1<T,hip. Since \\'Mld \\';11 II, Ihis <br />Nalinn ha~ made Inall~ 10 'imall hll;-,iner..,'ics al h.1\\('1' r;t1e~, anu 011 more.:- <br />favorable lerms than \\lcn: availahle III IhC:IH ill lilt: Plj\\Jll' kndillP. <br />world. The rationale for Il,is long-slanding j1<llicy .., Ihal il is in Ih,~ <br />Nation's best inleresl II) preserve Ihe uppunllllil)" fl)f ~Illi.tll bllSlnt~~,~t:s Ii) <br />nourish and \0 playa meflll role ill our COll\\\\CfCiallifc, hCC"",,; of ,hl' <br />benefits to be derived front pluralism, compclitillll and indepelldell'.c. <br />In part, this same rationale also underlies the Prefercnce Clause. <br /> <br />[. <br />The Prderence Clause Provides Creater Oppllrlnnil). <br />for Local Control. <br /> <br />Closely related to Ihe issue of avoiding Ihe abuses of power common 10 <br />monopolies is the preservalion of local COlllrol. The massi\'e sile of <br />mosl private utility companies makes (hem Ie" responsive to Ihe needs <br />and desires of local governmenl and consumer groups. The operation of <br /> <br />. <br /> <br />:~rl'd('ral Plml'r Commi:''llon, "N<.ltinl1itl <br />P\I\\c..'r Sliney" (llJ7()); '"EIt'l'lri,"' L :lllll\' <br />SI;lIl'lIIl".," PUb/II' Pow!'r, ~h, <br />lall.-F<~. 1~7~. <br /> <br />23 <br />