	Introduction

The federal government, through the Department of Energy, operates four regional power marketing administrations (PMAs), created by statute, the Bonneville Power Administration (BPA), the Southeastern Power Administration (SEPA), the Southwestern Power Administration (SWPA), and the Western Area Power Administration (WAPA), each operating in a distinct geographic area (see Figure 1 ). PMAs must give preference to public utility districts and cooperatives, and sell their power at cost-based rates set at the lowest possible rate consistent with sound business principles. Since passage of the Federal Columbia River Transmission System Act of 1974 (16 U.S.C. SWPA returns revenues to the U.S. Treasury for repayment, with interest, of the federal investment in generation and transmission facilities and, like SEPA and WAPA, for repayment of annual appropriations.
The U.S. Department of Energy operates four regional power marketing administrations (PMAs)—the Bonneville Power Administration (BPA), the Southeastern Power Administration (SEPA), the Southwestern Power Administration (SWPA), and the Western Area Power Administration (WAPA). These agencies all operate on the principle of selling wholesale electric power with preference given to publicly or cooperatively owned utilities "at the lowest possible rates to consumers consistent with sound business practices" under the Flood Control Act of 1944 (16 U.S.C. §825s). Maintaining competitive rates sufficient to cover operating costs and repay the federal investment in the hydropower dams and transmission systems amid drought, legal challenges, and customer pressure for cost reductions are some of the challenges faced by these agencies, and issues tied to these challenges may come before Congress.