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Privatizing Federal Electricity Infrastructure

January 24, 2018
By Chris Edwards

Over time it has become clear that federal electric power providers typically lag behind private energy companies in terms of efficiency, innovation, and environmental performance.

Private-sector utilities provide the bulk of electricity generation, transmission, and distribution in the United States. However, the federal government also owns a share of the nation’s electricity infrastructure. "Federal entities account for seven  percent of U.S. power generation, and they own about 14 percent of the nation’s transmission lines. The federal government entered the electricity business in the mid-20th century when faith in government ownership was high." Over time it has become clear that federal electric power providers typically lag behind private energy companies in terms of efficiency, innovation, and environmental performance.  In recent decades there has global trend toward privatizing government-run businesses including power generation and energy infrastructure. It’s time to privatize the federal government energy holdings.