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<br />,. rhl' 1 elll h Allll"ndmo:n[, whidl Il"'l'f\ \'S
<br />fllr (he 31,t1c~ all pll\\l'r.. IWI lldl'~;IlI.'J [I)
<br />llh' h~J('r.tl ~')\l'rI1llk'lI1. tlJ.~ h~I'f1
<br />Illll'rpll'll'd III I1rnhlhll ;lll} ;11[1011,
<br />illl:lu;[HI!:' Il'dr.:l.tll.l\;llll)lI. \\hi..:h 1I11r.:1 t"l';C",
<br />\\'ilh 111,' illlh:pl.'lllknl C1o.hll'Ih.:": Illlhl' ~1;lll'"
<br />1I"/\,l'f"ill.J.: I' (/t'Ilwrdl. .~04ll.S" .HI)
<br />I 19J~I: '~'l' Tn-Ii'} I'. II hilt'. 7.1ll.S. 711()
<br />(I Hh~), CO/!('Cf(lr \'. nay, 11 \\',L11. 11.\
<br />I!X70J; .\lcn'{Jflfdt' Hank l' ;\'1'1\" )"01,1".11,
<br />211.1.S. I.\H(I~i~l.
<br />
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<br />
<br />.
<br />
<br />Federal power to 'nr~1 their growing Inad requirements lhat private
<br />ulilities wen' wmpelled to aceepl reduced volumes of Federally gen.
<br />eratcd power and hcgan complaining aboullhe "subsidy."
<br />II Ii al", wnnh n,)(ing thai, to thc extent thaI Federal power was in
<br />the p",1 snld at rate> which wer., insufficient to repay Ihe Federal invest-
<br />m~nI in thc generating fadlities. private utilitie; were largely respon-
<br />sible. In the early day, of hydroeketric planl construction it was not at
<br />allllncommol1 for pril.ale utilities to huilJ transmission lines to Federal
<br />pmj",.h and llien p,m.hase the I'owcr at dump power rales which were
<br />in~lJfli:il.'n1 In rl'pay h:dL.'ral ill\'l':-.(m~111. This pr:h~rice in pari convinced
<br />Clln!.!r~s~ III aullll)fil.~ the ~nn~lrlll.,'lion l)!" Federall)-owned Iransmis-
<br />"inn li[It~.....
<br />Addrl~:..:,>iJlg I h~ ,lrglll1lcllt l)n il.... merils. there i.~ 110 HslIbsidy" granted
<br />III pr,.'kll:IlCl.: l.'lhlllTllL:rS in I Ill.' f,.'lht of Ih~ ~k~tri~ po\\'~r (hey purdlase,
<br />TI1f..' l.,'()'.( l)j" h:dt.'rall~...gt:l1eritl('d power i~ by law cakulctlcd at rales
<br />whi(1l n,:pil! I Ill' l-"t'tkral in\L'~tllh.'1ll in thl.: fa..;ilitie~ allributahlc to
<br />PLl\\'I'1 .1!l'lIcratioll. rill'" all inlcrL.'...1 Cl)lIlptlllf..'llI on the illvc~lTncnt. ~Iort.'-
<br />P\'~r, IHt.'!'crclll:c- \.."lI'lt,ll1\er...; frt.'qllcl11ly pay higher pri(cs for Federally
<br />gcneri..llf..'d pUWl'r Ih:lIl Jll rri\'alt~ IIIi1iliL.'.'l, ~il1cc they purchase firm
<br />POl""'-; prilate uliIiIlC" hencfilling 110m thcir larger loads and the fas't
<br />that th(.~. Ilalc Iheit ()\In gcnerating capability thus can purs'hase ses'-
<br />IlIHI;:UY p\JWCI t"n dump power, at ...;ignifit:all1l~' rt.\dLU:~d rates.
<br />
<br />2. 1'\'1'11111111111 for pllhlh': bodi..:-; frlllll h'dt.'ral inl'omt' laxes is 110t a
<br />":..ub',idy" 1)111 i... IllalldalCd b) lll~ t'nn.,lilulillll alld ill the case of non-
<br />prolit i)fg.lIli/<1lll)n... i:-. ,"Il)lIlld pllhlic pllliL~'.
<br />The claim [hat jirl'krL'IIL'~ ~?u:..It~I11~rr.. rccci\\.' a sllb~idy in that they arc
<br />t.'\l'mpl rf~llll pa~ing l-cdcli.llta\c:-'j'llIirely ll1i~COlh:~i\'c:'llhc basis for the
<br />lax l'.\l..'ll1plitl/1. ["<1.\ l..'\elllpt ,Ialll'" j, 111)( hcslnweu on "'litle, lo~al and
<br />Il\uni(ip,d a~":IH::i..::-. t,y C...)ngr\,.....~. {u ..:.ub~idi/.~ pnw~r g.t.'\1l'ralill1\ ..:nsts,
<br />but hc(all~~.' (Ill..' Federal ('OIl"'ljTllllllll prnhibih the imposilion of "11I:h
<br />laxc~" .
<br />Nor ,:al1 il h~ ar~lh=d lllal 1:l\-('\i~l11plitlll cdll!"crs ~nm~ special stat LIS
<br />on munil:ip;t! prl.'krcllcl' l'lh(()lIl1~rl.,. Till' poli(~' llf L.'\t'mptioll for publil:
<br />PO\\I.'I" .Igclh.:it.:" rrnlll lid I"L'lkl,tlllIl:OIl1l' la\c:... ilnd tht,;' eligibilify hH tax
<br />c...elllrl hL"'lld~, I" idl..'lllll.'al III Ill,: 1"')l)ilf..'Y <tppliL.'d h) 1l11ll1i~ipi.llly O\\IH:d
<br />walt..r -"y'~.k[lI~, n:lIllLd g~l~ disll ihllt ion )y:-.tL'I11~, garoagc collcclion
<br />1I1'tivilll.""', and IralhlH1llallnll .".\'~IL'l11S. In "OIl1t.' l'llmmunilies, IhcSL:
<br />fLIIlL'iinll', ;\1\-' p~~1 I"lll"llll'd h~' Illllllh.:ir.1I gO\L'rlllllL'1l1; in others, by
<br />priv\lll', fUI )"IrOnl l'lllllp,lI1il~S" Tlli... f1l'cdulll to l'hoose how Iht'st' .'lcr-
<br />\ ice... \\ ill he pnn'idl'd i'. l.:II.itl~ ed hy i1llllllllli\.'ipal gO\ L'rnm~nrs, SUOjL'ct
<br />tu \1:11(' la\\. If I ilL' d(xi~illll hy till.: ~omll1\1l1i[y b the governmenlal
<br />opera lion alll..'rnilli\l', ,Il~ Cnnstlllllional har agains! F~derallaxalil.)n of
<br />10Lal gn\"ernnlL'l1t i:.. appl1l.'ahk. "'hL.'rc (he l'l1oiL:c i.... I~) ll-~C privalely
<br />owned "':lH.porali()l1~ to pClltlnn I I lU....l' fUllctions, L:1t'arly Ihe applicahl~
<br />Federal tax rs'4uiremL'nlS musl bc U1I'1.
<br />The e.xemprioll fr~))ll la.\aLilHl of oth~r prefcrclll.:c 1.:1Islomcrs, slIch as
<br />l.:oopcr3ti\'c~ and IllHl-profil organi7utinns, i.'l nor based on the Consti-
<br />lution, hul rcsts upou thc sound philosophy of our ta\ law, that organi-
<br />lati,,,,, whidl perform ss'rl"ices which henefil the gens'ral puhlis'.. and
<br />whiL"h do Ilot makl..' a profit as a result of providing tho!\~' services, arc
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