Comments on Options To Reorganize the General Public Utilities Corporation
RCED-83-84, Jan 13, 1983
In response to a congressional request, GAO commented on: (1) the viability of reorganizing the General Public Utilities Corporation (GPU), either by public takeover or through divestiture; (2) potential avenues for capital enhancement available to GPU; and (3) the management of GPU.
The individuals interviewed generally agreed that the reorganization options offered are not viable because they would not expedite the cleanup process, reduce the impact of the accident on consumers served by the utility, or reduce the cost of providing service. In addition, if such options were pursued, it would tend to shift the focus away from the cleanup issue to less consequential ones. Those contacted felt that the cleanup issue should be resolved before either a public takeover or divestiture can realistically be considered. Most officials contacted stressed the importance of restarting Three Mile Island (TMI) as soon as safely possible to enhance the short-term financial position of GPU and make additional funds available for the TMI-2 cleanup. An early restart of TMI-1 would also provide some flexibility in developing the long-term actions required to ensure that the company can expand to meet future service demands. Those interviewed did not believe that GPU management will inhibit the recovery of a sound financial base for the utility; in fact, many complimented the initiatives taken by company management in the wake of the accident.