Energy Regulation

More Effort Needed To Recover Costs and Increase Hydropower User Charges Gao ID: RCED-87-12 November 25, 1986

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.

GAO found that: (1) FERC has taken steps to increase its administrative cost collection by including other federal agency costs in its annual billings to licensees; (2) FERC is finalizing rulemaking that revises the basis for valuing federal lands used for hydropower projects; (3) an analysis of the potential impact of increased land-use charges on licensees and their customers showed that the impact would likely be minimal; and (4) land exchanges have not affected the FERC assessment process except where legislatively exempted. GAO also found that efforts to: (1) provide additional guidance and clarification of cost data requirements appears to be a positive step in encouraging agencies to provide their administrative costs to FERC for billing licensees; and (2) ensure the recovery of reasonable charges for use of federal lands and reduce interest costs from delayed billings to licensees also are in progress.

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