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Energy Regulation: More Effort Needed To Recover Costs and Increase Hydropower User Charges

RCED-87-12 Published: Nov 25, 1986. Publicly Released: Jan 12, 1987.
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Highlights

In response to a congressional request, GAO evaluated the Federal Energy Regulatory Commission's (FERC) responsibilities under the Federal Power Act (FPA) to assess and collect three annual charges from licensees participating in its hydropower licensing program.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Federal Energy Regulatory Commission To ensure that all administrative costs attributable to the hydropower licensing program are recovered, the Chairman, FERC, should have the Director, Office of Program Management, work with officials of the Forest Service to apportion their administrative costs between activities under the Federal Land Policy and Management Act and FPA and seek recovery of all FPA-related costs.
Closed – Implemented
At the urging of FERC, the Forest Service submitted its fiscal year 1986 administrative costs applicable to FERC licensing activities. These costs amounted to $262,000.
Federal Energy Regulatory Commission To ensure that FERC assesses reasonable hydropower charges for usage of federal lands and minimizes federal interest costs, the Chairman, FERC, should take steps to ensure that a final rule to revise land-use charges and change the current annual administrative charge billing cycle is completed in a manner that authorizes land-use charges to become effective January 1, 1987.
Closed – Implemented
Final rulemaking is complete and revised land-use charges billed with increased collections of about $800,000.

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Topics

Administrative costsAgency missionsCollection proceduresCost controlEnergy costsGovernment collectionsHydroelectric energyLicensesProgram managementUser fees