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Federal Electric Power: Bonneville's Residential Exchange Program

RCED-90-34 Published: Feb 06, 1990. Publicly Released: Mar 09, 1990.
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Highlights

Pursuant to a congressional request, GAO reviewed the Bonneville Power Administration's (BPA) implementation of the Residential Exchange Program, which would reduce the disparity in power rates charged to residential consumers, focusing on: (1) the significance of the program to the participating utilities, the utilities' residential and small-farm customers, and BPA and its customers; and (2) BPA efforts to ensure that participating utilities passed the exchange energy cost savings to their customers.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Bonneville Power Administration The Administrator, BPA, should initiate benefit pass-through reviews of utilities that were and are now participants of the exchange program.
Closed – Implemented
BPA developed procedures on September 30, 1990, to verify that rural and domestic customers of private and public utilities in the BPA service area receive BPA hydropower rates. Compliance reviews have been completed at five private and one public utility.
Bonneville Power Administration The Administrator, BPA, should include in its review procedures for: (1) testing customer billings to ensure that the appropriate amounts of benefits are passed through to customers; (2) ensuring the timely pass-through of these benefits; and (3) coordinating BPA reviews with those performed by state utility regulatory commissions.
Closed – Implemented
BPA compliance audit procedures include testing of customer billings to ensure timely and accurate pass-throughs. Also, BPA will meet with PUC to coordinate its reviews.
Bonneville Power Administration The Administrator, BPA, should consider placing some reliance on state commissions' reviews. Before doing so, BPA should determine the adequacy of the commissions' reviews.
Closed – Implemented
BPA agrees to rely on state PUC reviews where appropriate.
Bonneville Power Administration The Administrator, BPA, should inform the two public utilities for which it conducted pilot benefit pass-through reviews of the review results and follow up to ensure that issues raised in the reviews are resolved.
Closed – Implemented
BPA will mail audit letters to PUC and meet with PUC officials to ensure that findings are resolved.

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Billing proceduresConsumer protectionElectric utilitiesEnergy costsEnergy marketingstate relationsMonitoringPrice regulationUtility ratesPublic utilities