Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, October 9, 1995 TAG: 9510090100
SECTION: VIRGINIA PAGE: C-4 EDITION: METRO
SOURCE: Associated Press
DATELINE: CLARKSVILLE LENGTH: Medium
The 50,000-acre man-made lake, also known as Kerr Lake, is in Southside Virginia along the North Carolina border. It is owned by the Southeast Electrical Power Administration, a federal agency that owns 22 other lakes in the Southeast.
Since early this year, Congress has been considering selling the power administration's assets to trim the scope of government.
The House Resource Committee voted recently to include the dams, locks, lakes and federal lands surrounding those lakes in an auction. Bidding would begin at $1.4 billion.
The House Transportation and Infrastructure Committee, which oversees the Army Corps of Engineers, favors a plan to sell only the generators and electric equipment, not the property itself.
Both proposals are aimed at getting the government out of the business of generating electricity.
But rural electric cooperatives oppose both plans. They contend selling the generating equipment would mean higher electricity rates for rural customers. Cooperatives buy electricity from the power administration for less than they could on the open market.
The co-ops said the sale would be a shortsighted way to decrease the budget deficit.
``You're talking about selling something for 10 years of profit, then losing it forever,'' said Richard Johnstone, director of communications at the Virginia Association of Electric Cooperatives.
But people who live near the lake said it has failed to bring all the economic advantages to the region that it could.
Residents have long complained that the federal government places too many restrictions on lakeside development. They said the sale would generate an economic boom in Southside Virginia and northern North Carolina.
``It's a huge body of water, a tremendous recreational opportunity that lacks basic services because of the restrictive policies toward commercial development,'' said Charles Simmons, a Clarksville real estate agent and frequent critic of federal management of the lake.
Only three marinas and one motel overlook the lake. There are no lakeside restaurants.
But other residents wonder what would happen to the state, local and federal parks, boat landings and recreational areas if the property is sold. The attractions draw 3 million visitors to the lake each year.
It's unclear how much federal land on the lake would be suitable for houses, businesses, restaurants, hotels and condominiums. While the Corps of Engineers controls 70,000 acres around the lake, much of the land is unsuited for development. Much of the best land is set aside in wildlife management areas.
Buggs Island was built in 1953 to control floods, generate electricity and provide recreational opportunities. The lake has 800 miles of shore curling through countless coves along the Virginia-North Carolina border.
by CNB