Preference Power

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The Federal Power Act (16 U.S.C. § et seq.), establishes that federal power will be offered for sale to public, municipal and rural electric customers first and then to profit making utilities, like investor-owned utilities, if available. When the CRSP projects were constructed, enough interest by the preference power community existed to use all the output of the projects. Although in some cases, the federal power was more costly than coal-fired generation. Consequently, all of the CRSP power was allocated among these preference customers. These customers have been paying for the projects for the last 30 years.