WASHINGTON — House Appropriations Committee Chairman Hal Rogers, R-Ky., has written a letter to U.S. Treasury Secretary Tim Geithner supporting a proposal to eliminate rules requiring municipalities to defease outstanding bonds when selling or leasing their water systems to a private company.

The proposal, which Rogers' letter says he learned of recently, was submitted by the National Association of Water Companies and American Water. It seeks an "administrative change" to the current remediation rules under section 141 of the internal revenue code, which the water companies say imposes "a significant financial penalty" on local issuers who pursue public private partnerships for their water systems.

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