Rural Utilities Service: Risk Assessment for the Electric Loan Portfolio

Pursuant to a congressional request, GAO discussed the Rural Utilities Service's (RUS) electric loan portfolio and the potential for future losses to the federal government from these loans, focusing on: (1) substantial write-offs of loans to rural electric cooperatives; (2) likely additional losses to the federal government from loans to financially stressed borrowers; and (3) the potential for future losses from viable loans that may become stressed in the future due to high production costs and competitive or regulatory pressures.