Federal Energy Regulatory Commission Needs To Act on the Construction-Work-In-Progress Issue
EMD-81-123
Published: Sep 23, 1981. Publicly Released: Sep 23, 1981.
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Highlights
GAO reviewed the overall financial environment under which the utility industry is presently operating.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Energy Regulatory Commission | The Chairman of the Federal Energy Regulatory Commission should pursue, with the Department of Energy, the customizing of the Energy Information Administration model to use in analyzing construction work in progress requests. |
Closed – Not Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Federal Energy Regulatory Commission | The Chairman of the Federal Energy Regulatory Commission should develop a generic rulemaking for construction-work-in-progress which better defines financial hardship criteria that can be applied to a utility seeking regulatory rate relief. This criteria should address how to take into consideration on a case-by-case basis a utility's current generation mix, such as: (1) how dependent a company is on oil and gas; (2) an analysis of a utility's demand forecast to verify that capacity expansion is, in fact, necessary; and (3) an analysis of whether the utility is following least-cost supply options. |
Closed – Not Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Construction costsElectric utilitiesElectric utility constructionEnergy costsFinancial managementInflationFinancial conditionPowerplantsEnergy conservationConstruction