Cost Impacts of Reorganizations at the Tennessee Valley Authority

GAO was asked to review the operating costs of some organizational units within the Tennessee Valley Authority (TVA) and to determine whether the current reorganizations are resulting in higher administrative costs and higher electric power rates. GAO reviewed the organizational changes made by TVA in fiscal years 1979 and 1980; identified and selectively evaluated increases in administrative and general expenses and other operating costs for three offices; and assessed the effect of the increases in administrative and general expenses on power production costs.