FERC Expenditures for the Trans-Alaska Pipeline System (TAPS) Case

EMD-82-132: Published: Sep 29, 1982. Publicly Released: Sep 29, 1982.

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GAO reviewed the Federal Energy Regulatory Commission's (FERC) contracting and small purchases procedures as they related to the Trans Alaska Pipeline System rate case.

In the course of its review, GAO discovered a need to initiate actions to recover about $71,800 from Alyeska for records reproduction services paid for by FERC under a cost-sharing agreement between FERC, Alyeska, and the State of Alaska. The FERC staff made at least one attempt to begin collecting the moneys in late 1980. An Alyeska representative reported that he had agreed with the FERC proposal for payment; however, he requested documentation for the expenditures prior to making a commitment. Because no documentation was provided, no off-setting discovery expenditures were made. Later attempts to collect a larger sum owed the Government were also fruitless. GAO believes that, based on the procurement records, FERC should be able to support the amount due from Alyeska. Because of the interest cost on Treasury borrowings, further delay in recovering the moneys due the Government will add to the interest costs incurred to date of approximately $18,600. Therefore, the appropriate supporting documentation should be assembled and presented to Alyeska for immediate payment.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Chairman, Federal Energy Regulatory Commission, should direct that appropriate supporting documentation be assembled and presented to Alyeska for immediate payment.

    Agency Affected: Federal Energy Regulatory Commission

 

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