To privatize the Federal Power Marketing Administrations, and for other purposes.

TABLE OF CONTENTS: Title I: Establishment of Corporations and Transfer of Facilities Title II: Privatization of Corporations Title I: Establishment of Corporations and Transfer of Facilities - Establishes the following Government corporations to operate, maintain, and market the electric power transmission and generation facilities transferred to them under this Act: (1) the Southeastern Power Corporation; (2) the Western Area Power Corporation; and (3) the Southwestern Area Power Corporation. Directs the President to appoint, with the advice and consent of the Senate, a Transition Manager for each such Corporation. Prescribes transition guidelines for the transfer of facilities and funds, and the termination of the Federal power marketing administrations. Amends the Energy and Water Development Appropriations Act of 1993 to repeal the prohibition against the use of Federal funds for studies relating or leading to the possibility of changing from the currently required "at cost" to a "market rate," or any other noncost-based method for hydroelectric power pricing by the six Federal public power authorities, or other Federal authorities without specific congressional authorization. Title II: Privatization of Corporations - Instructs the Secretary of the Treasury to retain the services of investment banking firms to serve jointly as co-lead managers of the public offering for each such Corporation and to establish a syndicate to underwrite the public offering. Prescribes preparation guidelines for such public offering, including the election of a Board of Directors and the private status of the Corporations subsequent to the sale of 60 percent of the Federal interest in each such Corporation.