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Furthermore, the Counties need the benefits of this economic 

 source of power more than ever. The purchase of Central Valley 

 Project power saves CPPA and TPPA public agency customers 

 approximately $2.5 million per year in comparison to the area's 

 private utility rates (which are 50% higher than the national 

 average) . This savings helps reduce the costs of providing 

 essential public facilities and services. This savings is critical 

 to local governmental units which are feeling a tremendous cost 

 squeeze from Federal and state mandated programs. In California 

 the problem is further exacerbated by a "tax shift" crises, whereby 

 the State government has been stripping-of f county and special 

 district revenues to supplement its general fund revenues. 



CPPA and TPPA would therefor greatly appreciate your 

 Subcommittee's consideration of including in H.R. 1906 the attached 

 legislative language to protect our preference power entitlement. 



Thank you for the opportunity to testify on this issue of 

 critical importance to the CPPA and TPPA. 



