Natural Resources and Environment:
Report on Arkansas, White, and Red River Basins Water Resources Development Program, Corps of Engineers (Civil Functions) and Southwestern Power Administration, Fiscal Year 1957
B-125031, Aug 29, 1958
The General Accounting Office has made an audit of the activities of the Corps of Engineers (Civil Functions), Department of the Army, and the Southwestern Power Administration, Department of the Interior, in the Arkansas, White, and Red River basins, including the Whitney Project, Texas, This audit was made pursuant to the Budget and Accounting Act, 1921 (31 U.S.C. 53) and the Accounting and Auditing Act of 1950 (31 U.S.C. 67). Federal development of the water resources In the Arkansas, White, and Red River basins has been undertaken principally by the Corps of Engineers. Southwestern Power Administration markets the energy generated at hydroelectric power plants at these Corps projects. In part the hydroelectric plants and the transmission system are operated as an integrated power system. This operating arrangement makes the financial reporting on a combined basis appropriate and desirable.
Contracts for the lease of electric transmission facilities and for the sale the sale and exchange of electric energy with certain Generating and transmission (G and T) cooperatives were reactivated in fiscal year 1956 and continued in fiscal year 1957. For fiscal year 1957, cost of power purchased and rental of transmission facilities under the reactivated contracts exceeded the revenues received from the cooperatives by about $1,745,000. In fiscal year 1956, the excess of the cost of power purchased and rental of transmission facilities over the revenues received from these cooperatives was about $l,758,000. The Federal Power Commission effective August 9, 1957, approved rate increases of about 27 percent from an average of 5.51 mills to 6.97 mills per kwh) to all preference customers (including Q and T cooperatives), The full effect of these rate increases on transactions with the cooperatives was not known at the time of our audit.