Energy Regulation

Factors Relating to Oil Overcharge Settlements Need Better Documentation Gao ID: RCED-90-181 August 23, 1990

Pursuant to a congressional request, GAO provided information on several aspects of the Department of Energy's (DOE) Economic Regulatory Administration's (ERA) handling of the proposed settlement of overcharge litigation against an oil company.

GAO found that: (1) ERA had little documentation of many of the significant events and decisions leading to the proposed settlement; (2) the proposed consent order between ERA and the oil company allowed the oil company to pay the settlement amount, plus interest, over an 8-year period; (3) ERA later determined that the oil company could pay the settlement in less than 8 years; (4) ERA did not adequately document its litigation risk analysis; and (5) ERA litigating attorney participation in the negotiations leading to the proposed consent order was very limited.

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