Federal Electric Power:

Pricing Alternatives for Power Marketed by the Department of Energy

RCED-86-186BR: Published: Sep 30, 1986. Publicly Released: Oct 30, 1986.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO identified alternatives to the Department of Energy's (DOE) power marketing administrations' (PMA) power-pricing practices.

The alternatives discussed are those based on a cost-of-service objective and those based on criteria other than cost. GAO noted that the: (1) cost-of-service objective requires that the government or utility recover costs through electric rates; and (2) alternatives based on criteria other than cost-of-service include methods for recovering some irrigation project costs through power sale revenues and marginal-cost pricing. GAO found that: (1) changes to current PMA power-pricing practices could identify and recover the government's costs or result in revenues in excess of costs; (2) the cost-of-service alternative would result in pricing methods that are more consistent with nonfederal electric utilities; (3) the government could recover an additional $449 million of its future interest costs and increase the reported value of the total federal investment if PMA implemented changes in the computation of interest; and (4) PMA must consider the effects of price increases on power customers, regional economics, and U.S. Treasury revenues when determining power-pricing practices.

Oct 1, 2018

Sep 14, 2018

Sep 6, 2018

Aug 14, 2018

Aug 2, 2018

Aug 1, 2018

Jul 24, 2018

Jun 28, 2018

May 24, 2018

Looking for more? Browse all our products here