Unfair Competition From Co-ops
The Coalition for Fair Competition in Rural Markets has released a study which states that electricity co-ops are using taxpayer funds to subsidize their entry into other markets. It says that funds intended for the supply of electricity are being used to enter the propane and hvacr industries. Annually, it estimates the subsidy to be approximately $225 million.
The report says the co-ops often establish subsidiaries to do this work, but declares that it is clear that the subsidiaries are receiving support from regulated electric activities.
Publication date: 01/14/2002
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